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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
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