Data released by the Petroleum Planning and Analysis Cell (PPAC) shows that fuel sales in the country may grow 5.2 percent in 2012-13, down from its earlier projection of 6.1 percent.
In 2011-12, the sales grew 5 percent and the country consumed 148.13 million tonne of fuel, data shows. According to the revised forecast, the country could consume 155.6 million tonne of refined petroleum products compared to its earlier forecast of 157.07 million tonne.
The decline in the projected sales growth could be attributed to the fact that the economy is expected to expand around 5.7 percent in 2012-13 compared to 6.5 percent in the year ended March 2012.
Following the cap in the sale of subsidised cooking gas cylinders at six per household, the organisation has halved its projection for growth in demand for the fuel in 2012-13 to 5.6 percent.
Diesel accounts for over 40 percent of refined fuel consumption in India and according to the latest PPAC estimate, demand for the fuel is set to rise 8.3 percent compared with a previous projection of 5.9 percent as it is considerably cheaper than petrol.
India, which imports more than 80 percent of its fuel needs, liberalised petrol prices in June 2010 but continues to regulate diesel prices to protect the poor.
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