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Rediff.com  » Business » Fuel demand growth to be slowest since '05-06: Minister

Fuel demand growth to be slowest since '05-06: Minister

July 13, 2009 15:48 IST

India's fuel consumption in the current fiscal is likely to grow at its slowest pace since 2005-06, with demand projected to rise by 2.4 per cent, petroleum minister Murli Deora said on Monday.

Fuel consumption is projected to grow to 136.61 million tonnes in 2009-10 against 133.4 million tonnes in the previous fiscal, Deora informed the Rajya Sabha.

The expansion in demand will be the slowest since 2005-06.

While petrol demand is projected to rise to 12.27 million tonnes from 11.25 million tonnes last year, jet fuel (aviation turbine fuel) consumption is likely to remain unchanged at 4.46 million tonnes.

Diesel,the most burnt fossil fuel in the country, may also see a slump with only 5 per cent increase against 8.4 per cent in the previous fiscal. This year, demand for diesel is expected to be 54.35 million tonnes against 51.66 million tonnes last fiscal.

Demand for LPG, however, will continue to rise to 12.49 million tonnes in 2009-10 from 12.19 million tonnes last fiscal, he said.

Separately, minister of state for petroleum and natural gas Jitin Prasada said the government had mandated selling petrol doped with 5 per cent ethanol in 2006, but the programme is being implemented only in 16 states and 3 union territories out of the 20 states and 4 UTs identified.

Issues like availability of ethanol, state excise procedures and state taxation policy were roadblocks in the implementation of the programme, he said.

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