Demand for diesel will increase due to elections and harvesting of Rabi crop

Mumbai: Diesel demand is expected to increase by 75,000 barrels per day during the April-June period as a result of the ongoing Lok Sabha elections in the country and harvesting of Rabi season crops. According to a report, diesel demand has increased by 60,000 barrels in the first quarter of 2024.

According to the report of S&P Global Commodity Insights, the demand for oil products increased by 1.32 lakh barrels per day in February, which is 2.40 percent more than February last year.

LPG and diesel demand witnessed the highest year-on-year increase in February due to increasing cold in North India. Due to increase in traffic, diesel consumption has also increased.

Diesel consumption has increased by 2.60 percent on annual basis in February. The report said that as the cold subsided, activity in the industrial and construction sectors increased, which also resulted in an increase in gasoline consumption.

During the upcoming Lok Sabha elections, along with increase in vehicle movement for election related activities, diesel consumption will also increase. India's oil demand is expected to increase by 206,000 barrels per day in 2024.

Meanwhile, according to another report, India's crude oil import volumes from Russia are likely to remain stable till July despite reduction in discounts on Russian oil and increase in sanctions. Demand for Russian crude remains high and Indian oil refineries are unlikely to reduce imports. Present The reason behind this is also believed to be the Lok Sabha elections.