NEW DELHI: Growth in India's diesel consumption slowed to an annual 1.7 percent in April, its lowest rise since September, as fewer power outages cut demand from farms and industry, preliminary sales data showed on Monday.
Overall oil product sales, a proxy for oil demand in Asia's third-largest oil consumer, rose 3.9 percent to 12 million tonnes, according to the data.
India's power generation rose an annual 6.8 percent in April, as the country added more capacity in the fiscal year that ended in March.
Consumption of petrol rose by an annual 7.5 percent in April but demand for the fuel is expected to ease in May after a record 5 rupees per litre increase in gasoline prices.
Car sales in India, a key indicator for petrol consumption, rose at their lowest pace in two years in April as higher interest rates, fuel prices and vehicle costs crimped demand in the world's second-fastest growing auto market.
A slowdown in car sales also indicate that growth in industrial production could also ease in April,leading to s low er demand for fuels.
India consumed 5.46 million tonnes of diesel, which makes up about a third of refined products consumption, and 1.2 million tonnes of petrol in April.
Consumption of liquefied natural gas (LNG) in April rose an annual 13.4 percent to 726,000 tonnes while that of naphtha rose 16.3 percent, mainly due to lower supplies of gas from the Reliance Industries operated D6 block.
Kerosene consumption in April declined an annual 0.1 percent to 748,430 tonnes. It is being gradually replaced by cleaner liquefied petroleum gas (LPG), whose usage rose 8.1 percent in April to 1.13 million tonnes from a year ago.
Jet fuel consumption during April rose an annual 15 percent to 451,830 tonnes.
Copyright Reuters, 2011
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