 India has experienced a massive power shutdown, as the country is trying to keep up with summertime’s high power demand. The crisis with the grid left 600 million people without electricity. Excessive uploading of the electricity line has crippled the total system a number of times, and this has led to the use of independent diesel-operated power-generation. As a result, diesel usage increased by 9%. Such an event has been seen not only in India, but also in China last year. It is anticipated that the country will see future partial power shutdowns and hence further diesel use.
In June, Indian oil demand hiked up sharply by 7.2% y-o-y; this was the strongest demand since February. Oil use peaks in the summer in India, as the season’s power demand increases and the agricultural season gets into full swing. Almost two-thirds of this increase resulted from diesel demand. The country consumed 1.5 mb/d of diesel in June. Earlier forecasts indicated that Indian oil demand would grow by 3.5%; however, due to the recent summer crisis, the country’s oil demand growth might reach and slightly exceed y-o-y growth of 4%. According to the Society of Indian Automobile Manufacturers, domestic passenger car sales increased robustly for another month, by 8%, during June y-o-y, despite higher fuel prices and higher excise duties on all cars.
Indonesian oil demand grew by 4.3% in May y-o-y, adding another 55 tb/d to the country’s total oil demand. More than 90% of this increase was related to gasoline. Gasoline demand in Indonesia grew by 11%, reaching around half a million barrels. The country’s oil demand for the first half of the year is forecast to grow by 2.1% y-o-y. As for the entire year, Indonesia will consume 1.4 mb/d, denoting growth of 22 tb/d.
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