India September oil product demand up 1.5% sequentially: Report

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₹200 per cylinder. Diesel consumption reported during September was higher by 0.4% on month and up by 3.8% YoY. Demand remained strong in the mobility sector as evident from the data of e-way bill generation and daily average highway toll transactions.

There was some slowness from the agriculture sector and contraction in sales of tractors leading to lower diesel consumption. The monsoon season ended with a deficit in total rainfall received by 5.6% largely affecting the sowing and harvesting activities. Gasoil demand is expected to be close to 7% above pre-COVID-19 levels this year.

Himi Srivastava, analyst, South Asia Oil Markets, S&P Global Commodity Insights, said: “India's gasoline demand saw a September increase to 869,000 b/d due to lower rainfall and strong auto sales keeping mobility demand strong. As the temperatures rose, the requirement of running air conditioners in cars also increased thereby increasing the consumption of gasoline. India’s gasoline demand rebounded to above pre-covid-19 levels in 2021 and is expected to be some 23% higher than 2019’s level in 2023." In September, total jet fuel and kerosene demand decreased to 182,000 bpd, down by 3% from last month as kerosene demand reduced due to switching to LPG while jet fuel consumption increased on month by 0.4%.

The report comes days after OPEC raised forecasts for global oil demand. According to OPEC's World Oil Outlook oil consumption will climb 16% over the next two decades to reach 116 million barrels a day in 2045, about 6 million a day more than its previous projection. OPEC noted that there’s potential for this jump to be even higher.