Date:14/10/2004 URL: http://www.thehindubusinessline.com/2004/10/14/stories/2004101401400300.htm

Back Diesel consumption rises 15.4 pc in Sept

Archana Chaudhary

Mumbai , Oct. 13

INDIA has seen a healthy growth in diesel consumption over the half-year ended September 30. Overall consumption of diesel, one of the indicators of the country's economic performance, grew 8.8 per cent over the last two quarters compared to a 3.9 per cent fall in the same period last year.

Consumption of petroleum products increased 5.6 per cent over six months compared to a 1.1 per cent fall reported same time last year, according to figures compiled by public sector oil companies.

In September 2004, retail and bulk diesel sales had gone up by 15.4 per cent.

"Diesel consumption, especially retail, has increased over the last few months. Although the growth has coincided with more branded diesel available in the urban retail markets, the ban on kerosene imports imposed in the third quarter last year has been an important factor," said a senior PSU official.

With more cars plying India's urban and semi-urban roads and national highways, petrol consumption has risen 4.8 per cent over the last six months, almost double the 2.5 per cent growth recorded for the same period last year.

With public transport including buses and auto-rickshaws replacing petrol and diesel with compressed natural gas, CNG sales stood at 59.9 per cent.

The growth recorded last year was 134 per cent. According to officials, the growth has slowed down as CNG is sold mostly in Delhi and Mumbai.

Among cooking fuels, LPG consumption grew 13.8 per cent (11.1 per cent) over the last six months. LPG consumption in September 2004 stood at 9.5 per cent compared to 15.6 per cent in September last.

Kerosene consumption through the public distribution system fell 1.8 per cent (-3.1 per cent) while direct sales of kerosene fell 31.6 per cent compared to an increase of 3.7 per cent last year.

The Government had banned free import of kerosene in November last year and appointed Indian Oil Corporation as canalising agent in response to longstanding complaints of it being used to adulterate diesel.

Kerosene consumption has since seen a downward spiral.

Among feedstock products, naphtha consumption fell 7.2 per cent compared to a 5 per cent fall last year.

While furnace oil consumption grew 9.1 per cent compared to a fall of 1.3 per cent last year, low sulphur heavy stock consumption fell 8.4 per cent compared to a 2.3 per cent fall last year.

Aviation turbine fuel recorded a 12.2 per cent growth (6.1 per cent) while lubes and greases fell 4.1 per cent compared to a 14.7 per cent fall last year.