ABSTRACT
The low level of consumption of oil in India is a reflection of the low level of demand for commercial energy in general. A recent estimate, prepared by the Energy Survey of India, shows that in 1960-61 about 22% of all energy came from coal, about 19% from oil, and about 4% from hydro-electricity, while the rest came from non-commercial sources. Before the development of the automobile industry, particularly before the second decade of this century, kerosene was the most valuable oil product in the world, and during much of the last century, accounted for more than 60% of total oil consumption. The price elasticity of demand for kerosene is generally accepted as negligible. The introduction of Russian oil hardly affected the level of consumption of American oil and expanded at the cost of vegetable and animal oils. The per capita kerosene consumption in the cities is nowhere lower than the national average.
