INDIA DATA: Gasoline, diesel demand falls 12-13%

Quantum Commodity Intelligence - Indian demand for diesel and gasoline fell 13% in January compared with a month earlier as Covid restrictions, including weekend curfews, hindered demand and economic growth, according to figures from the country's Petroleum Planning and Analysis Cell.

Gasoline deliveries, a proxy for demand, fell by 343,000 mt in January to 2.47 million mt, according to the data, while diesel demand fell 937,000 mt to 6.37 million mt.

The figures for gasoline are down 6% on the year for both fuels and support data released earlier this month by refiners that predicted the decrease.

Jet demand was also 18% down on the month, but it was up 3% on the year.

Total demand for all products in India fell 3.7% on the month and remained down around 5% on pre-pandemic levels due to much lower jet fuel consumption.

India has been exporting large amounts of diesel over the past few weeks to take advantage of surging margins, while it is also tendering for gasoline sales.

Regional weekend curfews, restrictions on mobility and an international flight ban have all contributed to a slowdown in economic growth in the country.

Government forecasts show economic growth is expected to be slower than expected at 8-8.5% this year, down from previous forecasts of above 9%.

For a full round-up of India trade data for crude and refined products, visit Quantum's Data Dashboard.