While higher crude prices and consequent inventory losses weighed heavily on India’s three state-run oil marketers in the second quarter, the ongoing economic slowdown has made matters worse.
According to data released by Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), diesel consumption during the period has taken a beating with demand for the primary freight transportation fuel contracting during August and September.
Data from the petroleum ministry’s Petroleum Planning and Analysis Cell (PPAC) shows that diesel demand grew just 0.1 per cent during the quarter, with August and September seeing volumes contracting by 1.1 per cent and 3.3 per cent respectively.
The fall in diesel consumption is a problem for India’s OMCs since the fuel accounts for nearly 40 per cent of India’s petroleum product consumption. Read More
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