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,” US 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% , or 41,000 barrels per day, down from 12% growth in 2016 as demand was affected by demonetisation at the start of the year,” the bank said. Read More…