Diesel sales in India jumped up sharply in the first half of April as agricultural activity pick-up and trucking increased to meet industrial demand, preliminary industry data showed on Monday.
Demand for diesel, the most consumed fuel in the country accounting for about two-fifths of the demand, soared more than 15% to 3.45 million tonnes in the first half of April compared with a year earlier.
Month-on-month sales rose 8.4% when compared with 3.19 million tonnes of diesel consumed in the first half of March that had witnessed seasonal slowdown.
Petrol sales rose about 2% to 1.14 million tonnes during April 1 to 15 when compared with the same period of last year. Sales however fell 6.6% month-on-month, the data showed.
In the first half of March, petrol sales had fallen 1.4% and diesel 10.2% year-on-year.
Consumption of petrol in April first half was 14.6% more than COVID-marred April 1-15, 2021 and almost 128% more than in the same period of 2020.
Diesel consumption was up 24.3% over April 1-15, 2021 and 127% higher than in the same month of 2020.
With the continued opening of the aviation sector, India’s overall passenger traffic at airports inched closer to pre-COVID levels.
Reflecting the trend, jet fuel (ATF) demand jumped 14% to 2,84,600 tonnes during the first half of April when compared with the same period last year. It was 35% higher than April 1-15, 2021 and 467.6% more than the same period in 2020. Month-on-month sales however fell 3.8%.
India is enjoying steady growth, with support from the services sector as well as the industrial side of the economy. The country’s oil demand was supported by strong industrial activity, industry officials said.
In terms of products, diesel was the main driver of oil demand as there was a pick up in the agriculture sector, as well as requirements for power generation and industry. Use of the fuel in irrigation pumps and trucking supported diesel.
Cooking gas LPG sales rose 5.7% year-on-year to 1.1 million tonnes in April 1-15. LPG consumption was 7% higher than in April 1-15, 2021 and 9.2% more than in the first half of April 2020. Month-on-month, the demand dropped 6.37% when compared to 1.18 million tonnes of LPG consumption during March 1-15, the data showed.
