India’s crude oil demand in October gets boost for festive season: S&P Global Commodity Insights
Demand for India’s petroleum products in October rose month-on-month by 113,000 barrels per day, supported by a pick-up in economic activity during the post-monsoon season and the Diwali festival, according to S&P Global Commodity. Insights. Demand increased over the year by 130,000 barrels per day, driven by diesel and gasoline, which increased by 83,000 barrels and 67,000 barrels respectively.
After two consecutive reductions in exceptional taxes to zero for ATF, gasoline and USD 10 per barrel for diesel exports, the Indian government resumed raising export taxes from mid-October. The ATF export tax was raised to USD 7 per barrel in mid-October with a later revision to USD 10 per barrel from November 1. Similarly, the diesel export tax was raised to USD 24 per barrel in mid-October with a subsequent revision. at 26 USD per barrel from 1 November.
The gasoline export tax remains zero. The export tax review is conducted in accordance with market conditions, after discussion with market participants. In the near term, S&P Global Commodity Insights expects India’s oil demand to increase sequentially by around 210,000 barrels per day in the fourth quarter after the monsoon season, boosted by festivals and holidays. On an annual basis, demand in the fourth quarter is expected to rise by around 100,000 barrels, compared to 370,000 barrels in the first three quarters of this year, which was boosted by a low base, he said.
“Overall, India’s oil demand is expected to increase by more than 305,000 bpd in 2022, before slowing to 220,000 bpd in 2023. Middle distillates (diesel and kerosene/jet fuel combined ) will account for about half of the growth in 2022, partly due to a slow recovery in 2021, before contributing about a third of the growth in 2023,” he added. (ANI)
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