Petro products see low sales growth

Hit by the ongoing industrial slowdown, consumption of petroleum products in India has witnessed its lowest monthly growth in the current year and one of the lowest in recent years, the Indian Oil Corp. said. Overall, sales during February are estimated to have grown close to 2.5% year on year. Liquid petroleum gas sales have dipped by over 1% while aviation turbine fuel (ATF) declined by about 9% and diesel growth tapered off to 4%.While diesel sales dipped due to a slump in manufacturing activity, the ATF decline was on account of curtailed flight operations in the country. Petrol has seen a healthy growth of over 14% and it will get a further boost due to the general elections, IOC said. The government has taken measures like lowering tax rates to drive consumer spending, while the Reserve Bank of India has been taking steps to infuse liquidity into the economy. (March 16, 2009)