Diesel consumption reduces in Feb
Petroleum products consumption has shown a 0.7 per cent decline in the April-February period, with diesel, considered the indicator of economic health, reporting a negative growth of 3.5 per cent during the last eleven months.
In February, diesel consumption was a negative 7.3 per cent. According to analysts, the fall in diesel consumption is in line with the trend over the last one year.
A senior foreign investment institution analyst said that it is not a source of worry, although diesel consumption is linked to the economic growth of a country. The rate of decline in overall product consumption has been coming down steadily and is a healthy trend.
Petrol sales improved marginally at 2.2 per cent, thanks to increased demand from the automobile industry. The consumption of lubricants and greases, however, reported a negative growth of 24 per cent.
Liquefied petroleum gas (LPG) sales fell 13.2 per cent in February. According to analysts, the decreased LPG consumption could be, because sales are normalising after public sector companies cleared the backlog for domestic LPG demand.
Kerosene consumption too continued its downslide at -5.0 per cent. According to analysts, the fall in kerosene sales could be related to stringent measures being taken against diesel adulteration.
Consumption of feedstocks - naphtha and furnace oil - fell by -9.7 per cent and -1.3 per cent. The consumption of low sulphur heavy stock, on the other hand, jumped 4.3 per cent in February.
The fall could be attributed to reduced feedstock consumption by petrochemical and fertiliser units, say analysts.
Consumption of aviation turbine fuel too showed a growth of -4.7 per cent in February.
According to analysts, the fall in overall consumption is in line with the recent consumption trends.
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