Price cuts push up petrol demand marginally in July

Three price cuts for petrol in July alone has managed to pump up sales of the fuel in India. 

Demand for petrol (MS) has increased marginally in July, at 1.918 million tonne as against 1.845 million tonne in June this year.

According to data released by Petroleum Planning and Analysis Cell, demand for petroleum products that are majorly decontrolled, including petrol, naptha, dropped to 10.52 million in July 2016 as against 11.33 million in June 2016—lowest in the current fiscal.

Demand for sensitive products like LPG, grew to 1.71 million in the given month as against 1.60 million tonne in June this year.

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Overall demand for all petroleum based products, however, fell to 14.92 million tonne as against 15.65 million tonne in the month of June 2016.

Demand, when compared to last year, has increased across segments. 

The data showed that overall demand has gone up nearly 4% in the month of July 1016 as against the same month of last year. 

Petrol demand rose 14.7% in July 2016 as against the same month of last year, data showed.

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The ministry of petroleum and natural gas, on August 12, 2016 said that price of India's crude oil basket stood at $41.82 per barrel as against $41.97 per barrel on August 10. 

It said, "In rupee terms, the price of Indian Basket decreased to Rs. 2795.77 per bbl on 11.08.2016 as compared to Rs. 2801.43 per bbl on 10.08.2016. Rupee closed weaker at Rs. 66.86 per US$ on 11.08.2016 as against Rs. 66.74 per US$ on 10.08.2016."

Petrol and diesel prices in India have seen price changes every fortnight given the volatility in international prices. At the beginning of this month, oil marketing companies had slashed petrol and diesel prices by Rs 1.42 per litre and Rs 2.01 per litre, respectively.