UPDATE 1-India’s September fuel demand steady, rising oil prices cloud outlook

- Advertisement -


* Petrol demand picks up from September 2019

- Advertisement -

* Festive season to aid diesel consumption – analyzer (adds description, comments)

- Advertisement -

October 13 (Businesshala) – India’s September fuel consumption climbed month-on-month as economic activity continued to pick up, government data showed on Wednesday, but global oil prices rose as the world’s third largest oil importer and Can prevent consumer improvement. .

Data on the Petroleum Planning and Analysis Cell (PPAC) website, fuel consumption, a proxy for oil demand, totaled 15.92 million tonnes last month, slightly higher than August and 5.2% higher than September 2020. Here Has shown.

- Advertisement -

But overall, consumption was still down 1.7% from September 2019.

Monsoon rains and shipping bottlenecks had driven a decline in consumption in August.

Petrol sales fell 3.5% from August but climbed 6% year-on-year and 9.5% from September 2019.

Hetal Gandhi, director of CRISIL Research, said the increase in personal mobility pushed up the demand for petrol, “which has clearly gone up from pre-COVID levels”.

Diesel consumption, which normally accounts for about 40% of refined fuel sales, also declined 1.7% month-on-month to 5.51 million tonnes, and was 5.6% lower than in September 2019.

But the sales of diesel have increased slightly as compared to the same period last year.

“Though the overall demand for diesel still remains below pre-COVID levels, the recovery ahead of the festive season is in line with the pace,” Gandhi said.

While a rise in global crude oil prices may slow the rebound, India indicated late last month that global oil prices could also accelerate the transition to alternative energy sources.

“I see a gradual recovery in demand from here, but higher oil prices could pose a serious problem for Indian consumers,” said Ehsan-ul-Haq, analyst at Refinitiv.

Versus a year ago, liquefied petroleum gas (LPG) sales rose 4.5% to 2.36 million tonnes, while naphtha sales fell 0.5% to 1.11 million tonnes.

Sales of bitumen used in road construction increased by 7.2%, while the use of fuel oil increased by 21%. (Reporting by Bharat Govind Gautam, Ashita Sivaprasad and Kavya Guduru in Bengaluru; Editing by Andrew Havens and Jan Harvey)

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox