No shortage of buyers for petrol and LPG in India

Vol 5, PW 10 (04 Jul 01) Midstream & Downstream

Anyone interested in selling light distillates to India will be encouraged to hear of soaring localdemand for LPG and petrol.

An internal paper prepared by the oil ministry on 13th June this year reveals that sales of petrol increased by 12% over last year while sales of LPG increased by 9.6%. "The reason for the increase in LPG is the central government's encouragement to use LPG for cooking purposes instead of kerosene by requesting state governments to surrender their corresponding kerosene quota," reads the note.

"Under this scheme the oil ministry has allocated 2.9m LPG connections to Andhra Pradesh, Maharashtra, Punjab and Rajasthan, with the result that kerosene consumption has come down from last year." And petrol Ministry officials attribute soaring demand to a massive increase in the number of cars on the roads and "strict implementation of the Solvent/Naphtha Control Order from the first quarter of 2000-01" that prohibits the adulteration of petrol with naphtha. Even naphtha sales have shown a slight increase of 1.2% over last year.

Contrast this with the consumption of diesel, which shows a drop of 2.7% over last year. Why Several reasons - among them "conversion of vehicles to CNG" and "availability of white kerosene supplied by Reliance which is cheaper and compatible with diesel."

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