India's demand for fuel rose 8.3% year-on-year to 15.8 million tons in December, driven by higher gasoline consumption as passenger vehicle sales rose on the back of year-end deals and discounts, as per the data of Petroleum Planning and Analysis Cell (PPAC). Fuel consumption figures are a proxy for oil demand in India.
Consumption of gasoil or diesel, which comprises about 40% of refined fuels used in India, rose 5.4% to 6.48 million tons. A temporary ban on diesel vehicles, upheld by India's top court, and road rationing in capital New Delhi are likely to hit consumption.
Sales of gasoline, or petrol, surged 11.8% from a year earlier to 1.82 million tons as passenger car sales in the month rose nearly 13% and the fuel became cheaper, thanks to tumbling crude prices. Cooking gas or liquefied petroleum gas (LPG) sales increased 6.2% to 1.78 million tons, while naphtha sales were 24.8% higher at 1.12 million tons.