According to government data, fuel consumption increased month-on-month in September as economic activity continued to rise, but soaring global oil prices helped the world’s third-largest oil importers and consumers recover. May be delayed.
Fuel consumption, a substitute for oil demand, totaled 15.92 million tonnes last month, a slight increase from August and a 5.2% increase from September 2020. This is data from the Petroleum Planning and Analysis Cell (PPAC) website.
But overall, consumption was still 1.7% below September 2019. August consumption fell due to monsoon rain and transportation constraints.
Gasoline sales were down 3.5% from August, but up 6% year-on-year and up 9.5% from September 2019.
Hetal Gandhi, director of CRISIL Research, said gasoline demand “clearly exceeded pre-COVID levels” due to increased personal mobility.
Diesel consumption, which accounts for about 40% of refined fuel sales, also decreased by 1.7% month-on-month to 5.51 million tons, a decrease of 5.6% from September 2019.
However, diesel sales have increased slightly since the same period last year. “Overall diesel demand is still below pre-COVID levels, but the recovery is in line with the rush towards the holiday season,” Gandhi added.
However, soaring global oil prices could delay the rebound, and India suggested at the end of last month that rising global oil prices could also accelerate the transition to alternative energy sources. [O/R]
“Demand is slowly recovering from here, but soaring oil prices can cause serious problems for Indian consumers,” said Refinitiv analyst Fsan Ur Hak.
Compared to a year ago, liquefied petroleum gas (LPG) sales were up 4.5% to 2.36 million tonnes, while naphtha sales were down 0.5% to 1.11 million tonnes. Sales of bitumen used in road construction increased by 7.2% and fuel oil usage increased by 21%.
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