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India’s Oil Demand Plunges Most in 13 Years Amid Cash Ban

  • Diesel use declines 7.8%; gasoline sales fall 0.6% in January
  • PM Modi’s anti-corruption measure may slow economic growth
Men on a motorcycle pass an oil storage tank illuminated at night at the Bharat Petroleum Corp. refinery in the Mahul area of Mumbai, India, on Saturday, Nov. 9, 2013. Bharat Petroleum is scheduled to release second-quarter earnings on Nov. 13.
Source: Bloomberg
Updated on

India’s monthly oil demand fell the most since May 2003 as the government’s crackdown on high-value currency notes continued to reverberate through the country’s $2 trillion economy.

Fuel consumption fell 4.5 percent to 15.5 million tons in January from 16.2 million tons a year ago, the Oil Ministry’s Petroleum Planning and Analysis Cell said Friday. Diesel use, which accounts for about 40 percent of total fuel demand in India, dropped 7.8 percent to 5.8 million tons, the biggest decline since September. Gasoline consumption fell the most since June.