Refined oil products sales to increase modestly in India

India’s economic growth is bringing about a 4.6% rise in the sales of refined oil products in the current financial year. A government official said India will consume 148.28 million metric tons of refined oil products in the financial year through March. The country’s economy increased 8.6% in the last financial year. Fuel consumption is up due to improving sales of new vehicles. A recent price hike in fuel prices could result in a slowdown in diesel fuel consumption. Diesel fuel makes up more than 42% of the total refined oil product consumption in India. The country raised the price of diesel fuel and cooking fuel in response to the high price of crude oil. Price hikes in vehicle financing will slow automotive sales from 26.17% to between 12% and 15%. India subsidizes fuel prices for automotive fuel. (July 8, 2011)