Print Edition - 2017-01-13  |  Money Digest

India’s diesel demand to drop

- Reuters, NEW DELHI

Jan 13, 2017-

Diesel demand in India might drop in the first quarter as a government decision to abolish high-value currency bills is expected to hurt small businesses, analysts said. Diesel demand is expected to grow only 2 percent in the first quarter of 2017 compared with a year ago, less than half of the 5-percent growth rate seen in the first 10 months of 2016, said Tushar Tarun Bansal, director of Singapore-based consultancy Ivy Global. In November, India Prime Minister Narendra Modi scrapped 500- and 1,000-rupee notes as part of a crackdown on tax dodgers and counterfeiters. Nearly 90 percent of transactions used to be in cash in India, 

which was gripped by a severe shortage of currency after this sudden decision. Demand for oil product may be lower than projected as consumers 

have been stocking up fuel. (REUTERS)

Published: 13-01-2017 09:46

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