New Delhi, July 11: India's petroleum products demand slumped 2.7 per cent to 22.10 million tonnes in the first quarter of the current fiscal as opposed to 22.70 million tonnes consumed in the same period the previous year. Diesel consumption, which is a reflection of the state of the economy, fell by 5.8 per cent to 9.17 million tonnes in April-June when compared to 9.73 million tonnes in the first quarter of 2002-03, industry sources said.
Analysts said the first quarter figures, which are way below the revised growth estimate of 2.2 per cent in 2003-04, are bad news for oil PSUs which are already losing hugely on selling LPG and kerosene below the cost.
With petro demand growing at just over 2 per cent to around 103.6 million tonnes in 2002-03, the oil industry had earlier this fiscal revised downward the growth estimate for the terminal year of the 10th Five Year Plan (2007) to 111 million tonnes from the Planning Commission's projection of 124 million tonnes.
Bureau Report