India’s Fuel Demand Grows At Its Slowest Pace In Five Years

India’s fuel demand in financial year 2018-19 rose at its slowest pace in the last five years as usage of petroleum coke, which contributes nearly 10 percent to the country’s fuel demand, fell 20 percent compared to last fiscal.

That comes after the government banned usage of petroleum coke—a dirtier alternative to coal—in FY19 due to rising pollution levels in the country, besides pushing for cleaner liquefied petroleum gas or LPG as cooking fuel instead of kerosene.

While the consumption of kerosene dropped 10 percent in FY19, its contribution to the overall fuel demand in India remains below 2 percent.

Fuel consumption in India rose only 2.7 percent to 211.6 million tonne in the financial year 2018-19, according to data published by the Petroleum Planning and Analysis Cell.

The consumption of retail fuels such as diesel and petrol continued to grow in FY19, albeit at a lower rate. Petrol and diesel consumption compared to last year grew 8 percent and 3 percent, respectively.