India’s consumption of petroleum products increased by 6.4% year-on-year in January, based on data from the Petroleum Planning and Analysis Cell. This looks decent, considering that growth was relatively soft in the previous five months, and also keeping in mind that in January 2018, consumption had increased by a robust 12.4% year-on-year. So the growth in January has come off a relatively high base.
Demand growth was seen across various products but, going ahead, it will be interesting to watch whether the overall demand growth seen in January persists. “With oil prices rising again, economic activity soft and a stiff base awaiting, growth may moderate in the coming months,” point out analysts from Jefferies India Pvt. Ltd.
