Date:31/12/2008 URL: http://www.thehindu.com/2008/12/31/stories/2008123155431400.htm

Business

Oil demand slows down

Special Correspondent

Fuel consumption grows by a meagre two per cent in November.

NEW DELHI: In a clear indication that the economic activity in the country was being impacted by the global slowdown, India’s fuel consumption grew by a meagre two per cent in November and the once surging demand of diesel showed moderation for the second month in a row.

According to official figures of the Petroleum Ministry here, oil product consumption in November stood at 10.99 million tonnes, against 10.77 million tonnes in the same month last year. Interestingly, diesel sales, which had, during the first part of the current fiscal, witnessed an unprecedented growth rate of 15-16 per cent, rose by 8.6 per cent to 4.46 million tonnes in November while the demand for petrol was up 5.9 per cent at 9.14 lakhtonnes.

Officials in the Ministry attributed the slight increase in consumption of fuel due to Assembly elections in five States that led to enhanced movement of vehicles and also the power outages that forced the use of gensets in various parts of the country.

Jet fuel consumption was down 6.5 per cent at 3.71 lakh tonnes. Industrial fuels also recorded negative growth rates pointing to slowdown in industrial activity. Oil product demand in April-November rose 4 per cent to 86.6 million tonnes. Crude oil imports in the month under review rose 7.8 per cent to 9.87 million tonnes.

Crude oil imports during April-November were up 7.9 per cent at 86.08 million tonnes while inward shipments of petroleum products were down 12.3 per cent to 13 million tonnes.