India’s petroleum product demand rebounded with growth to stay robust in 2019
India’s petroleum product demand rebounded in December, with growth of 3.6% year-on-year, having contracted by 2% in November. According to the latest data from the Petroleum Planning and Analysis (PPAC), India’s product demand increased by 167 MB/D year-on-year in December, driven by gasoline and gasoil, which were up by 60 MB/D and 58 MB/D, respectively. For the whole of 2018, India’s total product demand was up by 195 MB/D or 4.1%, which was a marked improvement from growth of 150 MB/D seen in 2017. For 2019, Platts Analytics expects India’s total product demand to grow by 260 MB/D or 5.3% on robust economic activity, with GDP to grow at 7.2%. Lower oil prices and improving rupee will also be supportive for India’s demand growth of petroleum products. Overall, gasoil/diesel and gasoline will continue to drive demand growth this year, so will LPG due to petchem feedstock demand and as the government continues to push for the use of LPG as a cooking fuel across the country, but the latter will soon reach a saturation point, which will lead to lower growth in the coming years.