Gas demand drops to five-month low in February on account of rising costs
Bengaluru: India’s gas consumption fell for the second consecutive month in February to its lowest stage since September final 12 months, as report retail costs continued to dam the restoration in demand for the third largest importer and shopper of oil on the planet.
Gas consumption, an indicator of oil demand, fell 4.9 p.c to 17.2 million tonnes year-on-year in February, knowledge from the Ministry’s Petroleum Planning and Evaluation Unit confirmed on Thursday. Oil and Pure Fuel. On a month-to-month foundation, demand fell 4.6%.
“Costs want to return down or coronavirus instances are more likely to go down earlier than they see an actual restoration, as some persons are nonetheless hesitant to journey,” stated Ehsan Ul Haq, analyst at Refinitiv.
In January, India recorded its first month-to-month decline in 5 months.
Gasoline and oil costs in India have reached report highs, reflecting international markets.
Earlier this month, India stated a transfer by main producers to increase cuts in oil manufacturing may derail any consumer-led restoration in some nations because it retains world costs excessive.
“India is doing what it could actually to scale back the influence of the pandemic, but it surely nonetheless wants OPEC’s assist to stabilize costs. OPEC mustn’t kill the goose that lays the golden egg, ”Ul Haq added.
Diesel consumption, a key parameter linked to financial progress and which accounts for round 40% of the general gross sales of refined fuels in India, fell 3.8% to six.55 million tonnes from the earlier month and in addition declined 8.5% over one 12 months. Gross sales of gasoline, or gasoline, fell 6.5% to 2.44 million tonnes in February and about 3% from the earlier 12 months.
Gross sales of cooking gasoline, or liquefied petroleum gasoline, have been up 7.6% from a 12 months earlier to 2.27 million tonnes, whereas gross sales of naphtha have been unchanged at 1.22 million. tons. Gross sales of bitumen, used for highway building, fell about 11.1%, whereas gas oil fell about 10% final month.