Business

Fuel Demand In September Steady, Rising Global Prices Cloud Recovery

Diesel gross sales rose barely from the identical interval final 12 months.

The nation’s September gasoline consumption crawled larger month-on-month as financial exercise continued to ramp up, authorities information confirmed on Wednesday, however hovering world oil costs might stall a restoration on the earth’s third-biggest oil importer and client.

Gas consumption, a proxy for oil demand, totalled 15.92 million tonnes final month, up barely from August and 5.2 per cent larger than in September 2020, information on the Petroleum Planning and Evaluation Cell (PPAC) web site.

However total, consumption was nonetheless 1.7 per cent under September 2019. Monsoon rains and delivery constraints had prompted a dip in consumption in August.

Petrol gross sales slipped 3.5 per cent from August, however climbed six per cent year-on-year and 9.5 per cent from September 2019.

Elevated private mobility drove petrol demand, “which has clearly moved above pre-COVID ranges”, mentioned Hetal Gandhi, director at CRISIL Analysis.

Consumption of diesel, which standard accounts for about 40 per cent of refined gasoline gross sales, additionally eased 1.7 per cent month-on-month to five.51 million tonnes, and was 5.6 per cent decrease in contrast with September 2019.

However diesel gross sales rose barely from the identical interval final 12 months. “Whereas total diesel demand nonetheless stays under pre-COVID ranges, a restoration is according to a rush forward of the festive season,” Gandhi added.

Nonetheless, hovering world crude costs might sluggish the rebound, with India signalling late final month that elevated world oil costs might additionally pace up the transition to different power sources. [O/R]

“I see a gradual restoration in demand from right here, however excessive oil costs might pose a significant issue for Indian customers,” Refinitiv analyst Ehsan Ul Haq mentioned.

Versus a 12 months in the past, gross sales of liquefied petroleum gasoline (LPG) elevated 4.5 per cent to 2.36 million tonnes, whereas naphtha gross sales fell 0.5 per cent to 1.11 million tonnes. Gross sales of bitumen, used for making roads, have been up 7.2 per cent, whereas gasoline oil use rose 21 per cent.

(Apart from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button