Diesel consumption increased in India, because of this demand fell in America and China.
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Fuel Demand in India: There has been an increase in the consumption of diesel in India. At the same time, the demand for bulk transportation fuel has decreased in the world’s two largest economies, America and China. According to data from the Petroleum Planning and Analysis Cell, the total consumption of high-speed diesel in India has increased by 12 percent to 85.9 million tonnes in the financial year 2022-23.
Recession did not affect diesel sales in India
At the same time, aviation turbine fuel has increased by 47 percent to 7.37 million tonnes. Whereas, gasoline demand grew by 13.4 per cent to 35 million tonnes and LPG demand grew by 8.7 per cent year-on-year to 28.5 million tonnes. Anish Dey, global head of energy, natural resources and chemicals (ENRC) at KPMG, said that there is some slowdown in many sectors in India, but it has not had any significant impact on diesel sales in India. However, if the recession persists in America, then there is a possibility that its effect may be visible on India in the next four-six months, but the effect will not be as direct as that of China.
India exports 25-30% of diesel produced to these countries
India exports 25-30 per cent of the diesel produced in the country to the US, Europe and African countries. Ashwin Jacob, partner, Deloitte India, said, as far as the reduction in demand from the US is concerned, it may also get transferred to European countries and other parts of Asia and Africa. Jacob said, India can continue to export processed Russian crude oil to Europe.
This thing came to the fore regarding the effect of recession in America and Europe
The number of trucks plying on China’s highways has dropped significantly in recent weeks. According to Bloomberg, the diesel premium for crude futures in Europe recently fell to the lowest level in more than a year. Barring 2020, when much of the economy has ground to a halt, a 2 percentage point decline would be the largest drop in US diesel use. S&P said that China’s recovery later this year will not completely remove the impact of the recession in the US and Europe on the Asia-Pacific region, but it will reduce it.
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