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Journalism of Courage
Indias fuel demand may rise 3.8 per cent in 2012 led by diesel and gasoline,the International Energy Agency said on Wednesday,adding a recent retail price hike by Asias third largest oil consumer will not dent demand growth in the short term.
IEA,an adviser to 28 industrialised countries,in its July report,forecasts Indias fuel demand to rise 132,000 barrels per day (bpd) to 3.6 million bpd in 2012 despite a likely slowdown in economic growth to 7.8 per cent in that fiscal.
It said Indias fuel demand may rise 3.7 per cent or 124,000 bpd in 2011 to 3.46 million bpd,unchanged from its June estimates,on expectations of strong economic growth of 8.2 per cent.
India last month raised prices of diesel,cooking gas and kerosene to soften the blow of high crude oil prices on state-run firms finances.
While the price increases should help offset revenue losses by refiners who have faced rising crude prices,the prices of the affected products remain regulated and the price hikes are likely not enough to significantly dent oil demand growth in the short term,the Paris based agency said.
IEA expects Indias diesel demand,which accounts for about 40 per cent of the fuel demand,to rise 5.8 per cent in 2011 to 1.37 million bpd this year and 5.5 per cent next year to 1.44 million bpd,it said.
Gasoline demand would rise 7.6 per cent to 363,000 bpd in 2011 and 6.7 per cent to 388,000 bpd in 2012.
Indias oil ministry has forecast oil-product sales to rise 4.6 per cent in the financial year that began April 1.
