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    The monsoon rains in India are expected to significantly reduce diesel demand in the third quarter. Heavy rainfall usually decreases construction, farming, and transportation activities that consume large amounts of diesel. It also boosts hydropower, reducing the need for diesel generators. As a result, state refiners may import less diesel and exports are likely to increase as domestic demand falls by around 50% compared to the previous quarter. The surplus of diesel in Asia could be eroded as India exports more due to lower domestic consumption during the monsoon season.

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    Monsoon to Wash Away Diesel Demand Surge - Timesofindia-economictimes

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    The monsoon rains in India are expected to significantly reduce diesel demand in the third quarter. Heavy rainfall usually decreases construction, farming, and transportation activities that consume large amounts of diesel. It also boosts hydropower, reducing the need for diesel generators. As a result, state refiners may import less diesel and exports are likely to increase as domestic demand falls by around 50% compared to the previous quarter. The surplus of diesel in Asia could be eroded as India exports more due to lower domestic consumption during the monsoon season.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    22 views2 pages

    Monsoon to wash away diesel demand surge in India

    Uploaded by

    Rahul
    The monsoon rains in India are expected to significantly reduce diesel demand in the third quarter. Heavy rainfall usually decreases construction, farming, and transportation activities that consume large amounts of diesel. It also boosts hydropower, reducing the need for diesel generators. As a result, state refiners may import less diesel and exports are likely to increase as domestic demand falls by around 50% compared to the previous quarter. The surplus of diesel in Asia could be eroded as India exports more due to lower domestic consumption during the monsoon season.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Indiatimes TheTimesofIndia TheEconomicTimes More SignIn / SignUp FOLLOWET:

    Oil&Gas
    Home Industry Auto Banking/Finance Cons.Products Energy Ind'lGoods/Svs Healthcare/Biotech Services

    Power Oil&Gas

    50
    ( )(/
    )
    / CHOOSE
    04:05PM|01JUL EOD LANGUAGE

    MARKETSTATS 27,144 145.19 8,328 40.60 31,473.0 274.0 67.32 0.21 MAR

    Youarehere: Home > Collections > OilDemand

    Monsoontowashawaydiesel Tweet 0
    StumbleU
    demandsurge Recommend
    Submit
    Reuters Jun16,2016,03.02PMIST

    Tags: regional | NewDelhi | markets | Mangalore | India | Chennai

    NEWDELHI:Themonsoonisexpectedtodumpabove
    averagerainfallontheSouthAsiannationaftertwoyearsof
    drought,cuttingitsuseofdieselforirrigationpumpsand
    generatorsoverthethirdquarterandpotentiallyrejuvenating
    exportsoftheoilproduct.

    Indiaisanetexporterofdieselwhichaccountsforabout
    40percentofitsoildemandbutajumpinimportsbystate
    refinerssinceAprilhelpederodeanAsiansurplusofthe
    fuel,liftingitsregionalprofitmarginstothehighestforthe
    yearsofarattheendofMay. (Themonsoonrainsarecrucial)

    millions
    choose us over
    anyone else.

    Thestaterefinersrampedupdieselimportsinthesecondquarteraftersuppliesfromprivateoilprocessors
    RelianceIndustriesandEssarOilbecametooexpensiveintheabsenceofdiscountsontaxesandshipping.

    Now,astherainscomeanddomesticdemanddrops,dieselimportscouldhaltandexportsrebound.

    "Duringthemonsoondemandfordieselseesablip(down)becauseindustrialactivityslows,transport
    movementgetsaffectedanddemandfromagriculturealsoreduces,"saidTusharBansal,aSingaporebased
    seniorconsultantatenergyconsultancyFGE.

    India'sweatherofficehasforecastaboveaveragerainsinthefourmonthseasonfromJune.Themonsoon
    rainsarecrucialforfarmers,whichotherwiseusedieselpoweredpumpsetstodrawwatertoirrigatetheir
    land.

    Officialsatstaterefiners,whichdominatethelocalretailfuelmarkets,saidtheyalsoseedieseldemand
    softeningduringthemonsoonseason.

    "Majorconstructionactivitiesincludingroadconstructionvirtuallystopsduringrains,sothereisboundtobe
    get going animpactondieseldemand,"saidY.K.Gawali,headofmarketingatHindustanPetroleumCorp.

    Morerainalsoboostshydropowergenerationalleviatingelectricityshortagesandreducingdemandfordiesel
    RELATEDARTICLES topowersmalldieselgeneratorstokeeplightsburning.

    Dieselconsumptionontherisedemandmay "WehaveseenveryhighdieseldemandinAprilMay.InJunealsoitisrising.ButIexpectdieseldemand(in
    surpasssupply,fearexperts thethirdquarter)tobe50percentoftheAprilJunequarter,"Gawalisaid.
    April5,2012
    OilOnFire:Crudepricesnudge$60 Asustainedriseindieselpricesasoilmarketsrecoverthisyearisalsoputtingfurtherpressureondiesel
    demand.
    June21,2005

    Dieselpricesshouldbedecontrolled DieselfuelledvehicleswhichweresupposedtooneofthedrivingforcesbehindrisingconsumptioninIndia
    April9,2012 areaswellfacedwithcourtbansoverpollutionconcerns,promptingsomeautomakerstoredrawengine
    productionstrategies.
    INDEPTHCOVERAGE
    Lowerdieselconsumptionmeansstaterefinerswilltakelessfromprivateandstandalonerefinerssuchas
    OilDemand MangaloreRefineryandPetrochemicalsLtdandChennaiPetroleumCorpLtdtomeetdemand.

    "Tothatextentdieselexportswillgoup.Refinersnormallydon'ttakemaintenanceshutdownduringrainsso
    SPOTLIGHT outputisnormallyhigherandthatalsoboostsexports,"Gawalisaid.

    Houseindisorder ModiStyle

    Lastyear,India'sdieseldemandgrewatanannual8percentduringtheJulySeptemberquarter,accordingto
    datapostedonagovernmentwebsite.

    Thisyear,FGEestimates,annualdieseldemandforthethirdquartercouldgrowjustaround1percentfroma
    yearagotoabout1.4millionbarrelsperday.

    HomebuyersseekRealEstateAct Fasttrackimplementation,focus
    draftrulesreview onoutcome:PM
    Thehomebuyershaveclaimedthattheact Atamarathonfivehourmeetingwithhis
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