All content in this website is sourced legitimately

Page No: 1
Petroleum consumption trends: Two distinct movements
Jun 26: April-May, 2017 petroleum consumption data shows a diversion in growth between the transpiration and industrial segments of the economy.
8MS,HSD and ATF  recorded growths of 10% and 5.4% and 10% respectively.
8In comparison, the growth rates of industrial fuels -- such as naphtha, LDO, FO/LSHS and even Bitumen, were low or negative.
8However, petroleum coke, a cheap dirty fuel, continued to show robust growth, indicating that the appetite for cheap but environmentally degrading fuels is still intact among India's furnaces. Imports of petcoke rose by 20% in April-May, 2017
8On the production side however, naphtha and petcoke output was significantly higher by Indian refineries, whereas there was a degrowth in LDP, FO, Bitumen and LSHS output in April-May, 2017. Both naphtha and fuel oil exports were high in the face of falling domestic consumption.
8The point to note is that the deviation between two consumption rates -- industrial and transportation --  has widened in May over April, 2017.
8Even the government attributes the deviation to the twin effects of demonetization and slowing industrial growth
8Then again, has the slack in demand in industrial fuels seen a rise in gas consumption through a substitution effect.
8The answer here is a "no" as well.
Click on Reports for more


**********************************

Back  |  Top