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India`s gas consumption in June rose by 17.9% from a yr earlier, authorities knowledge confirmed on Friday, as demand on the earth`s No.3 oil shopper headed again in direction of pre-pandemic ranges.
International oil costs have surged in response to issues about tight provides and disruption linked to grease producer Russia`s invasion of Ukraine, however Indian customers should an extent been sheltered as Indian refiners have purchased cheaper Russian gas the West has shunned.
Consumption of gas, a proxy for oil demand, totalled 18.67 million tonnes, knowledge from the Indian oil ministry`s Petroleum Planning and Evaluation Cell confirmed.
“Indian diesel and gasoline demand was comparatively low in Could-September 2021. In consequence, round 18% improve is from a decrease base,” mentioned Refinitiv analyst Ehsan Ul Haq, however added pent-up demand might drive a restoration to pre-pandemic ranges within the subsequent few months.
“The buying energy of India’s center class is rising regardless of current spike in meals and power costs,” he mentioned, though he didn’t rule out some demand destruction.
Diesel consumption rose 23.9% year-on-year to 7.68 million tonnes and was up about 21.9% from two years in the past.
Gross sales of gasoline, or petrol, have been 23.2% larger from a yr earlier at 2.97 million tonnes.
India`s gasoil demand rose quickly throughout the first two weeks of June, and lengthy queues appeared at some gas stations as issues grew over provide.
“We anticipate real power coming from center distillate demand,” mentioned Viktor Katona, co-head of crude evaluation at Kpler.
This may come from common demand, with “India fairly the exception in roughly maintaining gas costs intact, largely due to its widespread shopping for of closely discounted Russian crude,” downstream expansions and better exports, Katona added.
Indian non-public refiners reminiscent of Reliance and Nayara have been among the many greatest patrons this yr of discounted Russian provides.
Nonetheless, the nation final week to attempt to improve native provide imposed a windfall tax on producers and refiners which have boosted product exports to achieve from larger abroad margins.
DOMESTIC SALES (in million tonnes):
2022 2022 2022 2021 2021 2021
June Could April June Could April
Diesel 7.68 7.29 7.20 6.20 5.53 6.68
Petrol 2.97 3.02 2.80 2.41 1.99 2.39
LPG 2.23 2.17 2.16 2.25 2.16 2.11
Naphtha 1.04 0.90 1.07 1.19 1.25 1.24
Jet gas 0.59 0.60 0.55 0.26 0.27 0.41
Kerosene 0.05 0.07 0.07 0.14 0.14 0.11
Gasoline Oil 0.54 0.54 0.52 0.50 0.42 0.51
Bitumen 0.70 0.70 0.76 0.58 0.66 0.83
TOTAL 18.67 18.26 18.19 15.84 14.76 16.60
NOTE: Complete figures could not tally as a result of not all gadgets are included within the desk, and numbers are rounded. The numbers for earlier months could have been revised.
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