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MUMBAI, Jan. 24

HEAVY troop movement in the border areas of the country, coupled with an improved agricultural demand has pushed up diesel sales by 3.30 per cent in December 2001, say industry watchers.

The overall demand for petroleum products picked up by 3.30 per cent in December 2001, indicating a healthy trend in consumption.

According to analysts, the growth for the nine months ended December 31, 2001 was almost equal to last year. "The jump in consumption is not only beneficial to refiners-cum-marketers such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum Corporation, it is also positive for pure refiners such as Reliance Petroleum, as it will lead to better sales in the domestic market," said a senior oil analyst.

Consumption of petrol and liquefied petroleum gas continued to show consistent growth rate. While petrol jumped 8.03 per cent, LPG increased by 7.3 per cent over last year.

"Although the consumption of both the products has shown an increase in December, the cumulative April to December period, growth rates of both petrol and LPG show a secular trend," said an analyst. Analysts say the simultaneous fall in kerosene demand by 5.40 per cent may represent the shift in consumer fuel preferences to LPG.

Crashing prices may have led to consumption levels of naphtha and furnace oil to shoot up by 15.26 per cent and 13.33 per cent respectively.

The lubricants market has also seen a positive growth of 3.7 per cent, considered a healthy trend. Bitumen, which is used in road construction and other infrastructure sectors, however, continued to show a lower growth rate.

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