Oil consumption in the world’s fastest-growing major economy edged higher in August, posting its 12 consecutive month of growth, as below-average rainfall helped boost demand for diesel fuel by used farmers.
India’s total demand for oil products rose 0.8% from a year ago to 16.6mn tonne, according to the oil ministry’s Petroleum Planning & Analysis Cell. That’s the second-slowest pace of growth over the past year, according to data compiled by Bloomberg.
Consumption of diesel, which accounts for about 40% of the South Asian nation’s oil usage, rose 4.2% to 6.2mn tonne as below-normal monsoon rains, crucial for India’s peak sowing season, forced farms to use pumps for watering crops. The monsoon rainfall was 6% below normal till August 30.
Gasoline consumption expanded 7.8% to 2.4mn tonne, while LPG usage increased 2.9% to 2.1mn tonne, and petroleum coke consumption fell 19% to 2.1mn tonne.
In April-June, India’s economy expanded at the fastest pace in nine quarters led by strong domestic consumption and robust manufacturing growth. The sales in August of India’s top two motorcycles and scooters makers, Hero MotoCorp Ltd. and Bajaj Auto Ltd., rose 1% and 30%, respectively.