Preliminary industry statistics revealed that the demand for gasoline and diesel increased in September as economic activity increased due to the impending festival season and the end of the monsoon. Compared to consumption of 2.34 million tonnes in the same month last year, gasoline sales in September increased by 13.2% to 2.65 million tonnes. Sales were 23.3 percent higher than pre-pandemic September 2019 and 20.7% higher than Covid-marred September 2020.
However, demand was 1.9% lower than in August 2022, the preceding month. When compared to the same month last year, sales of diesel, the nation’s most popular fuel, rose by a respectable 22.6% to 5.99 million tonnes in September. Consumption increased by 23.7% over September 2020 and by almost 15% over pre-Covid 2019. Demand for the fuel increased 1.3% month over month, despite sales of the fuel declining by over 5% in August compared to July.
According to industry sources, the conclusion of the monsoon season in much of the nation and the beginning of the agricultural season contributed to an increase in demand for diesel. When it rains, the agricultural sector’s mobility and demand are typically constrained. Trucking and irrigation pumps both consume diesel. Also, the coming festival season contributed to a pick-up in economic activity and a spike in demand. Due to the monsoon and decreased demand, auto gasoline sales had decreased in July and August. This decline followed a rise in June that was fueled by more people travelling over the summer to cooler regions of the country to avoid the heat and taking holidays during school breaks.
India’s overall airport passenger traffic increased as the aviation industry expanded, bringing it closer to pre-Covid-19 levels. Accordingly, compared to the same month last year, the demand for jet fuel (ATF) increased 41.7% to 5,44,700 tonnes in September. It was around 12% lower than pre-Covid September 2019, yet it was 81.3% greater than September 2020. According to the sources, despite domestic air travel returning to its pre-Covid levels, international air traffic is still suffering as a result of ongoing restrictions in some nations.
Since the country relaxed epidemic lockdowns, India’s oil demand has consistently increased, with economic growth of 7%. Sales of cooking gas LPG increased 5.4% year over year to 2.48 million tonnes in September. The amount of LPG consumed in September was up 14.9% from September 2019 and up 9.3% from September 2020. The data showed that as compared to the 2.38 million tonnes of LPG consumed in August, the demand was up 4.26 percent month over month.
(source : PTI)
