New Delhi, Jan 25 (IANS) The overall petroleum product consumption progress in India from April to December remained sturdy at 9 per cent despite a droop in diesel as the demand in petcoke emerged stronger, a Jefferies report stated on Wednesday.
“Overall product consumption growth in India has remained strong in 9 months of FY17 at 9 per cent 12 months-on-yr regardless of slower diesel development as a result of strength in lots of different merchandise like petcoke, gasoline, liquefied petroleum gas (LPG), aviation turbine gasoline (ATF) and fuel oil,the report stated.
Petroleum product consumption progress has remained sturdy although it’s down slightly from final year’s high of 10.9 per cent. This is despite diesel volume development decelerating to three.7 per cent throughout April-December, from 7.5 per cent in the corresponding interval the earlier fiscal, it mentioned.
In response to the report, the 2 issues that stood out in April-December interval had been that while the petcoke consumption in India overtook gasoline in tonnage phrases, kerosene use was down sharply due to the government strategy, with positive implications for gasoline subsidy.
While kerosene consumption had been declining steadily for a few years, LPG consumption development was at a 12-yr high.
“We imagine this is part of a conscious transfer by the government to shift households away from kerosene towards LPG. This additionally ties in with the higher monthly worth hikes in kerosene as in comparison with LPG and news circulate on sharp cuts in kerosene quotas to various states,the report stated.
“Shift from kerosene to LPG has a number of advantages for the gasoline subsidy maths. LPG consumers are better tracked making it a lot simpler to implement Direct Benefit Switch in LPG than in kerosene. Extent of subsidy in LPG is lower than in kerosene and the latter is extra prone for use as an adulterant than LPG,it added.