India's Furnace Oil Consumption Rises Amid West Asia Crisis

The consumption of furnace oil in India has seen a significant increase in July, rising by 29.8% to 634 thousand metric tonnes (TMT) compared to the same month last year. This surge can be attributed to the industry switching from natural gas to furnace oil due to the ongoing crisis in West Asia.

The Petroleum Planning and Analysis Cell (PPAC) released data showing that over April-July, consumption of furnace oil was 11.9% higher at 2,222 TMT. In contrast, naphtha consumption fell by 13.8%, petcoke decreased by 3.6%, and light diesel oil dropped by 23.3%

The crisis in West Asia led to a disruption in LNG shipments through the Strait of Hormuz, prompting the Ministry of Petroleum and Natural Gas to invoke Section 3 of the Essential Commodities Act, 1955. The order set a priority hierarchy for gas allocation, with domestic PNG and CNG for transport given top priority.