Highlight
- Petrol sales up 12.1 percent to 2.78 million tonnes in October
- Diesel registers 12 per cent growth in sales at 6.57 million tonnes in October
- Petrol and diesel sales highest since June
Petrol and diesel sales in India hit a four-month high in October as the festive season revived demand, which was dampened by extended monsoon rains, preliminary industry data showed on Tuesday.
Petrol sales rose 12.1 per cent to 2.78 million tonnes in October as against 2.48 million tonnes in the same month last year.
Sales were 16.6 per cent higher as compared to October 2020 and 21.4 per cent higher than pre-pandemic October 2019.
Demand was higher by 4.8 per cent in September, with a month-on-month decline of 1.9 per cent.
Sales of diesel, the country’s most widely used fuel, grew 12 per cent to 6.57 million tonnes in October, higher than the same month last year. Consumption was 6.5 per cent in October 2020 and 13.6 per cent higher than in pre-covid 2019.
The fuel, which saw sales fall by about 5 per cent in August, when compared to the previous month of July saw a 9.7 per cent month-on-month increase in demand.
Petrol and diesel sales were the highest since June.
Industry sources said the demand for diesel has increased due to the end of extended monsoon rains over most parts of the country and an accelerated agricultural season. Rain typically restricts mobility and demand from the agricultural sector, which uses diesel in irrigation pumps and trucking.
The sowing of the Rabi crop as well as the festive season led to a pick-up in economic activity and increased demand.
Auto fuel sales declined in July and August due to monsoon and lower demand.
As the aviation sector opened up, India’s overall passenger traffic at airports approached pre-COVID-19 levels.
Reflecting the trend, demand for jet fuel (ATF) grew by 26.4 per cent to 568,000 tonnes during October, as compared to the same month last year. It was 65.8 per cent higher than October 2020, but 14 per cent lower than pre-covid October 2019.
Sources said, while domestic air travel has returned to pre-COVID levels, international traffic is lagging due to the ongoing restrictions in some countries.
India’s recovery has accelerated in recent months, but has been accompanied by increased inflation. The economy grew by 13.5 per cent year-on-year in April-June, reflecting the accelerating pace of recovery.
Healthy economic growth has supported demand for oil. India’s oil demand has been rising steadily since the easing of COVID-19 restrictions.
However, LPG sales in October declined by 1.27 per cent year-on-year to 2.44 million tonnes. LPG consumption was 1.3 percent higher than October 2020 and 5.2 percent higher than October 2019.
The data shows that there was a marginal decline in month-on-month demand as compared to 2.48 million tonnes of LPG consumption during September.
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