India has cut its forecast for fuel consumption by about 1 per cent to 155.63 million tonnes (mt) in the current fiscal year, reflecting a slowdown in the economy.
Oil Ministry's Petroleum Planning & Analysis Cell (PPAC) in a mid-term review trimmed forecast for fuel consumption to 155.63 mt in 2012-13 from previously projected 157.07 mt.
It projected a 5.2 per cent rise in fuel demand in the current fiscal year over 148.13 mt of petroleum product consumed in the previous year.
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Fuel consumption in 2011-12 had grown by about 5 per cent and PPAC had at the beginning of the fiscal year projected a growth rate of 6 per cent in 2012-13.
Finance Minister P Chidambaram had earlier this week stated that the economy will grow by 5.7 per cent in current fiscal year, down from 6.5 per cent in the previous one.
The fuel demand revision, according to PPAC, is mostly on account of almost halving of growth in consumption of cooking gas (LPG) to 5.6 per cent. This was being seen as an immediate fallout of the government decision to cap supply of subsidized LPG.
PPAC said 2012-13 will end with a 16.22 million tonnes of LPG consumption.
Demand for diesel, which accounts for 45 per cent of the fuel consumption in the country, is projected to rise by 8.3 per cent to 70.1 million tonnes. PPAC had previously projected a growth of 5.9 per cent.
PPAC projected a 5.5 per cent growth in petrol demand at 15.82 mt, while kerosene is expected to see a 9.5 per cent drop in consumption to 7.45 mt.
Aviation turbine fuel (ATF) too is projected to see a fall in demand of 7.2 per cent at 5.13 mt. Naphtha consumption is, however, projected to grow by 7.6 per cent to 11.95 mt.
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