INSUBCONTINENT EXCLUSIVE:
The country's monthly diesel sales have averaged 7.05 million tonnes in 2018.
Country's domestic sales for diesel and gasoline rose to record highs in May, pushing the country's
overall fuel consumption for the month higher year-on-year, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry
Fuel consumption, a proxy for oil demand, totalled 18.72 million tonnes last month, during which diesel sales soared to 7.55 million tonnes
and gasoline consumption climbed to 2.46 million tonnes - the highest monthly sales figures in PPAC data going back to April 1998.India, the
world's third-largest oil consumer, used 35.2 million tonnes of diesel during January to May this year, up 6 per cent from the
corresponding period last year.The country's monthly diesel sales have averaged 7.05 million tonnes in 2018, compared with a monthly
average consumption of 6.6 million tonnes last year.Sales of gasoline, or petrol, rose 7.6 per cent in May from April and are up 2 per cent
from the same month last year
Monthly demand for petrol has averaged 2.27 million tonnes this year, up 7 per cent from the 2017 average of 2.12 million tonnes.Diesel
consumption growth during the calendar year of 2018 may be more than double from last year, analysts and traders told Reuters, aided by an
expected regular monsoon that should boost demand for diesel used in harvesting, while the government targets massive infrastructure
spending.More than half of India's population is employed in the farm sector, which depends on diesel to fuel the pumps for land
irrigation.Higher domestic consumption in India, however, may cap the country's capacity to export diesel.India's diesel exports during
March to April this year were 3.79 million tonnes, down 22 per cent from 4.87 million tonnes of the industrial fuel exported during the same
time last year.Last month, petrol and diesel pump prices in India surged to record highs, raising pressure on Prime Minister Narendra Modi's
government to find a solution to provide relief to consumers without taking a hit on its finances.The recent rise in global crude prices
was largely behind the surge in domestic prices, but fuel is also heavily taxed by India's state and federal authorities, accounting for
