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India’s July Fuel Demand Rises 6.1% Year-on-Year, Ministry Data Reveals

India’s fuel demand in July increased 6.1% year on year. The oil ministry released the data by Petroleum Planning and Analysis Cell (PPAC) on Monday. The Ministry of Petroleum and Natural Gas reported that fuel consumption stood at a total of 17.62 million tonnes in July, down 5.7% from 18.68 million tonnes in June.

As per media reports, India’s fuel demand outlook is improving as the economy is ready for a strong bounce back (after a pandemic-induced slowdown) in consumption and continued momentum for the services sector.
Since higher prices have impacted demand, the fuel demand in July remained softer than the prior month. Moreover, with the rupee at a historically low level, the country will struggle if oil prices continue to rebound.

Sales of gasoline, or petrol, increased 6.8% from its year-ago value of 2.81 million tonnes. Monsoon-induced restricted mobility and construction work caused a fall in gasoline and gas oil sales of Indian state refiners in July. Also, high inflation curtailed overall demand for goods.

Cooking gas or Liquefied Petroleum Gas (LPG) sales increased 1.7% to 2.41 million tonnes. On the other hand, naphtha sales decreased 6.2% to 1.14 million tonnes. Bitumen sales rose 1.4%, while fuel oil use edged 19.8% in July.

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