India Expects Fuel Demand To Grow 5.5% In The Next Fiscal Year

India's fuel demand is likely to grow 5.5 per cent in the next fiscal year beginning April 1, initial government estimates show, reflecting a pick-up in industrial activity and mobility in Asia's third largest economy after months of stagnation.

India's fuel consumption in 2022-23, a proxy for oil demand, could rise to 214.5 million tonnes from the revised estimates of 203.3 million tonnes for the current fiscal year ending March 2022, according to government forecasts.

The estimates were released on the website of the Petroleum Planning and Analysis Cell (PPAC), a unit of the federal oil ministry.

Local demand for gasoline, used mainly in passenger vehicles, is expected to rise by 7.8 per cent to 33.3 million tonnes, while gasoil consumption was slated grow by about 4 per cent to 79.3 million tonnes, the data showed.

Consumption of aviation fuel would likely increase by nearly 50 per cent to 7.6 million tonnes, compared with the revised estimate of 5.1 million tonnes for the year ending March 2022.

Demand for petcoke, a better-burning alternative to coal, could increase 2.8 per cent to 14.8 million tonnes, while demand for liquefied petroleum gas, used as cooking fuel, is estimated to grow 4.5 per cent to 29.7 million tonnes, PPAC said.