Wait...
  1. Home >
  2. Export Import News >
  3. Import News >
  4. India's 2017 oil demand growth posts lowest gain since 2013 >
  5. India's 2017 oil demand growth posts lowest gain since 2013

Online Export Import Data Search

Complete Training Video : Click Here

India's 2017 oil demand growth posts lowest gain since 2013.


Date: 11-01-2018
Subject: India's 2017 oil demand growth posts lowest gain since 2013
Indian oil consumption in 2017 grew at its slowest in four years, according to government statistics, hit by the government's demonetisation move and a tax increase that knocked the gain in fuel use back to a modest 2.3 percent.

The low growth also coincided with another year of weak, albeit improving, new vehicle sales.

Last year's oil demand was held back "by headwinds from demonetisation and a new goods and services tax," U.S. bank Morgan Stanley said in a note to clients.

India imports almost all of its oil, shipping in around 4.2 million barrels per day (bpd) of crude in 2017, according to trade flow data in Thomson Reuters Eikon.

"Gasoline demand rose 7.4 percent, or 41,000 barrels per day, down from 12 percent growth in 2016 as demand was affected by demonetisation at the start of the year," the bank said.

India in late 2016 pulled all 500- and 1,000-rupee notes out of circulation, crimping retail and wholesale markets.

"The demonetization exercise hit consumption, particularly in the first half of 2017. We are likely to see better growth this year," said Sukrit Vijayakar, director at Indian energy consultancy Trifecta.

India also saw some structural demand changes that affected the use of refined oil products.

A government push for household to use more liquefied petroleum gas (LPG) has India challenging China as the world's top LPG importer.

This has come at the cost of a straight 15-month decline in jet fuel and kerosene demand in India, Morgan Stanley said.

Also, "naphtha demand ... was down 8 percent for 2017

as a whole, possibly driven by more LPG use in petrochemicals," it said.

SLOW CAR SALES

India's slow oil demand growth has surprised many, given the country has often been touted as the next China in terms of rising oil consumption.

Yet the oil demand figures correlate with slow growth in a related field: car sales.

India's new passenger car sales in 2017 likely approached 3 million for the first time and outgrew a record hit in 2012.

The figure, though, remains far below China's new car sales, which stand at almost 3 million a month.

The low auto sales are partly explained by India's annual per capita gross domestic product (GDP) being merely a fifth of China's. Fuels at Indian petrol stations are also much more expensive.

If an Indian citizen with an average salary buys 10 gallons of gasoline per month, that would represent nearly 30 percent of the person's income, while the average Chinese would fork out just 5 percent, data from statistics company Numbeo showed.

However, India's lacklustre auto sales may pick-up as its economy continues to grow strongly, at over 6 percent per year.

Trifecta's Vijayakar said car and motorbike sales in India "have shown good growth in the last few months ... (and) should be better this year."

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 06-12-2018
Notification No. 96/2018 - Customs (N.T.)
Exchange Rates Notification No.96/2018-Custom(NT) dated 06.12.2018

Date: 06-12-2018
Circular No. 50/2018-Customs
Clarification with respect to amendments to Customs and Central Excise notifications for EOUs - reg.

Date: 06-12-2018
Public Notice No. 57/2015-20
Errata to Public Notice No.50/2015-2020 dated 26th November, 2018 notifying procedure for allocation of quota for import of (i) Calcined Pet Coke for use as Calcined Pet Coke (CPC) in Aluminum Industry and (ii) Raw Pet Coke for CPC manufacturing industry.

Date: 06-12-2018
A.P. (DIR Series) Circular No.16
Exim Bank's Government of India supported Line of Credit of USD 500 million to the Government of the United Republic of Tanzania

Date: 05-12-2018
PUBLIC NOTICE NO. 56/2015–2020
Change in Appendix 1A of Foreign Trade Policy, 2015-20

Date: 05-12-2018
Notification No. 1/2018-Central Excise (N.T)
General Bond (Form B-17) to be executed by the EOUs

Date: 05-12-2018
Notification No. 79/2018-Customs
Amendment to notification no. 52/2003-Customs dated 31.03.2003 -reg.

Date: 05-12-2018
NOTIFICATION No. 23/2018-Central Excise
Amendment to notification no. 22/2003-CE, 23/2003-CE & 24/2003-CE all dated 31.03.2003 -reg.

Date: 05-12-2018
NOTIFICATION No. 23/2018-Central Excise
Amendment to notification no. 22/2003-CE, 23/2003-CE & 24/2003-CE all dated 31.03.2003 -reg.

Date: 03-12-2018
Circular No. 48 / 2018 – Customs
Procedure for movement of goods under TIR Carnets-reg



Exim Guru Copyright © 1999-2018 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001