New Delhi: Petrol, diesel and LPG sales in December exceeded their average growth rates for the year, with diesel demand rising sharply by 5 per cent on-year.
Petrol sales increased 6.7 per cent in December, compared with a growth of 6.3 per cent in the April-December period, according to provisional data from the oil ministry. Diesel consumption rose 5 per cent in December, significantly higher than the 3 per cent growth recorded during April-December.
LPG consumption, largely used for cooking in India, climbed 12.7 per cent in December, compared with 7.9 per cent growth in the April-December period. Aviation turbine fuel (ATF) sales, however, declined 0.5 per cent in December, against a growth of 1.4 per cent during the same nine-month period. Diesel demand has recovered sharply in recent months after remaining subdued in the early part of the fiscal year, primarily due to rainfall-related disruptions. Diesel accounts for about 40 per cent of total refined product consumption in the country, and its demand has a significant bearing on India’s overall oil consumption and import requirements.
Rising diesel use is also seen as a barometer of economic activity, given its extensive use in goods transportation, mining, agriculture and backup power generation for commercial and industrial units. Petrol sales has been supported by higher vehicle sales and increased holiday travel.
Meanwhile, mass flight cancellations by IndiGo, the country’s largest airline, weighed on ATF consumption, which has been weak this year. LPG demand has been boosted by its growing use as substitute fuel by industry amid high natural gas prices.>
