India’s fuel demand slips to 10-month low in July
India's fuel consumption slipped to a 10-month low in July, government data showed on Tuesday, as monsoon rains restricted mobility in the world's third-biggest oil importer and consumer.
Total consumption in July, a proxy for oil demand, totalled 18.09 million tons, down 6.6 percent from June. However, it was up 2 percent compared with the same period a year earlier.
Sales of diesel, mainly used by trucks and commercially run passenger vehicles dipped about 13 percent month-on-month to 6.89 million tons in July.
"With consumption patterns already slowing down due to the monsoon, weak July figures for diesel demand were aggravated by the floods in Northern Indian states over the first half of last month," said Viktor Katona, lead crude analyst at Kpler.
Fuel demand in India typically falls during the four-month monsoon season beginning in June as parts of the country are affected by heavy floods.
"Restricted mobility and an overall slowdown in construction activity have been the key factors behind bitumen demand falling to the lowest reading this year. We believe India's diesel demand will remain subdued in August, only to rebound in September-October," Katona said.
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