Cash Recall Threatens Indian Fuel Demand

摘要

Indian motorists have started panic-buying gasoline and diesel at the pump after Prime Minister Narendra Modi Tuesday ordered a mass recall of all large denomination banknotes in an effort to clamp down on counterfeit and illegally obtained money. The surprise move will hit India's oil consumption -- seen as a key driver of global oil demand growth -- at least temporarily, because most fuel purchases in the country are made in cash (IOD Oct.21'16). But the effects on India's economy could be felt for up to two years, analysts say.