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India's 2017/18 fuel demand seen up 5.8 percent - government

NEW DELHI - India's annual fuel demand is estimated to grow at 5.8 percent in the fiscal year to March 2018, higher than the previous year, government data showed on Tuesday, indicating improved industrial activity.

Local fuel demand - a proxy for oil demand - in India rose about 5 percent in the last fiscal year as economy slowed in the March quarter after government scraped old notes. Prime Minister Narendra Modi in November declared notes of 500 rupees and 1,000 rupees illegal tender, taking about 86 percent of total currency out of circulation, in a move that hit sales of cars and motorcycles.

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