IOC sees diesel demand rising in 6 months as longer-than-usual monsoon ends
India’s diesel demand is expected to recover in the next six months as a longer-than-usual monsoon season that affected transportation and industry has ended, the chairman of top domestic refiner Indian Oil Corp (IOC) said on Monday.
Diesel consumption usually tapers in monsoon season as rains hit construction and mobility. Any longer-term slowdown in fast-growing India’s fuel use could dim prospects for global oil demand.
“Fuel demand, especially diesel, is falling … In (July-September) normally demand is low because of monsoons, excess rain and floods,” Indian Oil’s Sanjiv Singh said.
India’s fuel demand fell to its lowest in more than two years in September, with consumption of diesel at its weakest since January 2017.
“It is a temporary slowdown,” said Singh, who was in Abu Dhabi to attend an energy conference.
