India's fuel demand is expected to recover to 3.8% in fiscal year 21
NEW DELHI: India's fuel demand is forecast to rebound to 3.8 percent in the next fiscal year starting in April from its slowest pace in six years, according to estimates by the Oil Ministry.
Petroleum product Demand in 2020-21 is expected to total 222.79 million tons, compared to 216 million tons estimate for the current prosecutor, the Ministry of Petroleum Planning and Analysis Cell (PPAC) said.
Governor of the Reserve Bank of India (RBI) Shaktikanta Das announced on Friday a 75 basis point cut in his policy repository rate to cope with the impact of the deadly coronavirus outbreak on the economy.
Fuel consumption in the current fiscal period ending March 31 will grow just 1.3 percent, its slowest pace in six years.
Diesel, the most consumed fuel in the country, is estimated to see a 2.8 per cent growth in FY21 to 86.6 million tons as compared with just 0.9 per cent expansion in the current financial year. The growth in diesel Demand in 2019-20 is the slowest in five years.
Petrol demand is expected to slow to 8.4 per cent to 33.43 million tons , from 9 per cent. Cooking gas LPG demand is estimated to grow by 5 per cent to almost 28 million tons in FY21.
The slowdown in fuel consumption in the current fiscal year reflects the decline in economic growth to an 11-year low of 5% in 2019-20.