In April, oil consumption in India demonstrated exceptional growth, registering more than 0.3 mb/d of growth for the second time in 2015. Total consumption also reached record levels, hitting 4.2 mb/d, with major products of consumption – gasoline and diesel – also recording historically high consumption levels.
Gasoline demand continues its upward trend with demand breaking the 0.51 mb/d level. It rose by 80 tb/d, or around 19% y-o-y, largely supported by passenger car sales data which increased around 18% from the same month last year. In this, two-wheelers drove growth higher, highlighting the sixth consecutive month of growth. Diesel oil demand also surged to reach 1.6 mb/d for the fourth time in history. This was 0.14 mb/d, or more than 9%, higher y-o-y supported by improvements in manufacturing activities in the country as well as less unseasonal rains tempering agricultural demand.
For LPG, demand picked up as compared to last year registering a rise of around 52 tb/d, or around 10% y-o-y, as demand of subsided LPG continues to provide support to consumption. Fuel oil demand growth increased again after a declining trend seen in March 2015, recording the second highest growth in 2015. This growth was a result of higher-than-anticipated consumption in the power sectors as well as the low baseline of 2014. The product increased by around 19 tb/d or close to 10% y-o-y.
In Indonesia, the latest available March 2015 data indicates a similar rise to the month of February 2015 with an increase of around 48 tb/d or around 4% y-o-y. All product categories were in the positive terrain with gasoline, jet/kerosene and LPG leading the growth increase by more than 4% y-o-y each.
Continued positive oil demand momentum in India, along with various other countries in the region such as Indonesia, Thailand, Philippines and Pakistan, indicate an optimistic projection for the region’s consumption levels going forward. Demand is expected to be supported by overall economic improvements and the steady, general economic performance of some countries of the region.
Other Asia’s oil demand increased by 0.21 mb/d in 2014. However, for 2015 oil demand is anticipated to increase by 0.26 mb/d.