The countryÂ’s fuel demand in 2016 grew at its highest pace in at least 16 years as low oil prices for most of the year boosted demand for gasoline and aviation fuels.
Consumption of fuels, a proxy for oil demand, surged 10.7 per cent to 196.48 million tonnes (MT) in 2016, data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry showed.
State polls in India in five states in February and March are likely to send thousands of voters criss-crossing vast distances, boosting gasoline demand throughout the first quarter of 2017, but analysts say growth could slow over the year as currency woes bite.
Refined fuel demand grew at 4.3 per cent in December, the slowest pace in three months, but use of diesel-fired generator sets and vehicles by political parties for canvassing in state polls could result in higher demand this quarter.
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