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World Oil Demand

OPEC Monthly Oil Market Report – November 2017

37

India

Indian oil demand

show solid y-o-y gains in September 2017 following a weak y-o-y performance in August.

Oil demand growth climbed by 0.42 mb/d, or a staggering 10.0%, to reach 4.70 mb/d, as compared to a year

earlier.

In terms of products, the strong rebound in diesel oil consumption, which rose by 0.25 mb/d, or 17%, y-o-y,

supported by automotive diesel, was the major factor behind the overall solid growth during the month.

Commercial vehicle sales grew more than 25% y-o-y in September, marking the highest rate of growth since

the end of 2011 lending support to diesel oil demand. This came despite easing construction activities and

floods in many areas of the country.

Gasoline demand also grew in September,

following broadly flat y-o-y data in the previous

month. The product rose by around 0.10 mb/d, or

18%, y-o-y to stand at 0.65 mb/d. Passenger

vehicle sales increased by more than 11%, with

SUV sales increasing by more than 26% and total

car sales rising by around 7% y-o-y. Two-wheeler

sales, which consume gasoline as fuel of choice,

increased by 9% y-o-y, supported by a recovery in

sales from rural areas.

LPG continued to grow, rising by 31 tb/d y-o-y with

total consumption at record levels of 0.83 mb/d.

Housing demand continues to support Indian LPG

demand, despite government efforts to reduce

subsidies, which is anticipated to cap LPG demand

growth in the future.

Graph 4 - 9:Indian gasoline demand,

y-o-y change

For the remainder of 2017, India is expected to be the main contributor to growth in the Other Asian region,

however, the impact of the Goods and Services Tax (GST) is expected to moderate demand growth,

particularly diesel in the construction sector. On the other hand, LPG in India, followed by middle distillates in

other countries in the region, will be the products leading oil demand in the region.

In 2018, better development in economic conditions y-o-y combined with the low base line of comparison

should act as positive factors to oil demand growth in India in 2018.

Table 4 - 6: Indian oil demand*, tb/d

-40

-20

0

20

40

60

80

100

120

140

Sep 16

Oct 16

Nov 16

Dec 16

Jan 17

Feb 17

Mar 17

Apr 17

May 17

Jun 17

Jul 17

Aug 17

Sep 17

tb/d

Sources: OPEC Secretariat, and Petroleum Planning and

Analysis Cell of India.

Sep 17

Sep 16

tb/d

%

LPG

827

796

31

3.8

Naphtha

348

323

25

7.8

Gasoline

649

551

98

17.8

Jet/kerosene

238

270

-32

-11.8

Diesel oil

1,739

1,491

248

16.6

Fuel oil

215

237

-23

-9.6

Other products

677

599

79

13.1

Total

4,692

4,266

425

10.0

Sources: JODI, Petroleum Planning and Analysis Cell of India and OPEC Secretariat.

Change 2017/2016