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Petrol consumption to grow 6percent in FY 2017-18

Petrol consumption to grow 6percent in FY 2017-18
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India´s petroleum consumption will grow at 6 per cent in financial year (FY) 2017-18, double the rate at which fuel demand in China is projected to grow, according to Moody´s Investors Service. ´China´s slowing economic growth will temper underlying product demand over the next 12-18 months. We estimate China´s demand for refined oil products will grow around 3 per cent annually in the next two years, compared with 4-5 per cent on average over the past five years. While petroleum consumption in India will likely grow 6 per cent annually in FY18, we believe this will not fully offset slowing growth in China,´ Moody´s said in a report. It said that Asian refiners have started to dial back their capacity additions and this trend is expected to continue in FY18, although the immediate impact on an oversupplied market will be somewhat limited.

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