India's oil consumption grows at fastest pace in 14 months

MUMBAI (Bloomberg) -- Oil demand in India rose 10.3% in the first month of 2018, the fourth straight monthly gain.

Total oil consumption expanded at the fastest pace in 14 months to 16.9 million tons from 15.3 million a year ago, according to the oil ministry’s Petroleum Planning and Analysis Cell. Improvement in road freight transport following the stabilization of the new nationwide sales tax and growing use of cars and scooters boosted the consumption.

The growth in demand came over a low base as in January last year the nation’s oil consumption fell the most in 13 years following the government’s crackdown on high-value currency notes.

Diesel usage gained 14.5% to 6.65 million tons. Gasoline consumption rose 15.6% to 2.09 million tons Demand for liquefied petroleum gas increased 4.6% to 2.08 million tons. Petroleum coke usage rose 9.2% to 1.98 million tons

The IEA sees India to be the center of global oil demand growth until 2030. The nation expects to double gasoline and diesel consumption by that year even as it aspires to sell only electric vehicles in 2030. The two fuels account for more than half of India’s oil usage.

The Society of Indian Automobile Manufacturers expects India’s passenger vehicles sales to expand 9% in the year ending March. The new goods and services tax does not include oil products at present.