By Bharat Gautam
(Reuters) – India’s gas consumption fell for the second month in a row in February to its lowest since September final 12 months as record-high retail costs continued to stonewall a requirement restoration for the world’s third-biggest oil importer and shopper.
Consumption of gas, a proxy for oil demand, fell 4.9% to 17.2 million tonnes year-on-year in February, information from the Petroleum Planning and Evaluation Cell (PPAC) of the Ministry of Petroleum & Pure Gasoline confirmed on Thursday.
On a month-to-month foundation, demand slipped by 4.6%.
“Costs have to come back down or coronavirus circumstances ought to scale back earlier than we see an actual restoration, as some persons are nonetheless reluctant to journey” mentioned Refinitiv analyst Ehsan Ul Haq.
In January, India had registered its first month-on-month decline in 5 months.
Gasoline and gasoil costs in India have risen to document highs, mirroring world markets. ]
Earlier this month, India mentioned a choice by main producers to increase oil output cuts may derail any consumption led-recovery in some nations because it retains world costs elevated.
“India is doing what it could to cut back the influence of the pandemic, nevertheless it nonetheless wants some assist from OPEC to stabilise costs. OPEC shouldn’t kill the goose that lays the golden egg”, Ul Haq added.
Diesel consumption, a key parameter linked to financial progress and which accounts for about 40% of total refined gas gross sales in India, fell 3.8% to six.55 million tonnes from the earlier month, and likewise declined 8.5% year-on-year.
Gasoline, or petrol, gross sales fell 6.5% to 2.44 million tonnes in February and by about 3% from a 12 months earlier.
Gross sales of cooking gasoline, or liquefied petroleum gasoline, have been 7.6% greater than a 12 months earlier at 2.27 million tonnes, whereas naphtha gross sales remained unchanged at 1.22 million tonnes.
Gross sales of bitumen, used for making roads, have been down about 11.1%, whereas gas oil decreased by about 10% final month.
(Reporting by Bharat Govind Gautam and Anjishnu Mondal in Bengaluru, Further reporting by Okay. Sathya Narayanan; Enhancing by Krishna Chandra Eluri)
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