Diesel sales rise sharply over 15% as agricultural activity pick-up

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 over 15 per cent to 3.45 million tonnes in the first half of April when compared to a year ago.

Month-on-month sales rose 8.4 per cent 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 per cent to 1.14 million tonnes during April 1 to 15 when compared with the same period of last year. Sales however fell 6.6 per cent month-on-month, the data showed.

 

In the first half of March, petrol sales had fallen 1.4 per cent and diesel 10.2 per cent year-on-year.

Consumption of petrol in April first half was 14.6 per cent more than COVID-marred April 1-15, 2021 and almost 128 per cent more than in the same period of 2020.

Diesel consumption was up 24.3 per cent over April 1-15, 2021 and 127 per cent 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 per cent to 2,84,600 tonnes during the first half of April when compared to the same period last year. It was 35 per cent higher than April 1-15, 2021 and 467.6 per cent more than the same period in 2020. Month-on-month sales however fell 3.8 per cent.

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 per cent year-on-year to 1.1 million tonnes in April 1-15. LPG consumption was 7 per cent higher than in April 1-15, 2021 and 9.2 per cent more than in the first half of April 2020. Month-on-month, the demand dropped 6.37 per cent when compared to 1.18 million tonnes of LPG consumption during March 1-15, the data showed.