India’s record diesel demand to continue in 2017, growth to slow

India’s record diesel demand to continue in 2017, growth to slow

India’s diesel demand is expected to rise to record levels again this year as a slew of infrastructure projects boosts use of the transport and industrial fuel, although a government-induced cash shortage will hold growth to its slowest in three years.

Increased fuel efficiency, a fall in commercial vehicle sales, and the use of other fuels for power generation are also expected to dent demand growth for diesel, analysts and traders told Reuters.

“The first quarter saw delayed effects of demonetisation but I think (diesel demand) should improve as there are a number of projects going on such as road and railways, which should drive diesel demand up,” said Tushar Bansal, director of Ivy Global Energy, a Singapore-based consultancy. Read More…

 

Credit By : MoneyControl

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