India’s gasoline demand rose in October to a seven-month peak, with gasoline gross sales surging to an all-time excessive, authorities information confirmed on Tuesday, as festivals boosted mobility and financial exercise on the earth’s third greatest oil shopper.
Gas consumption, a proxy for oil demand, rose over 12% to 17.87 million tonnes final month from September. It was up 0.8% from the corresponding interval final yr and three% from October 2019, information from the Petroleum Planning and Evaluation Cell (PPAC) confirmed.
Consumption bought a lift from the beginning of the pageant season in October, offsetting the impression of excessive costs, Refinitiv analyst Ehsan Ul-Haq stated.
October’s gross sales of gasoline, or petrol, had been 8.3% and three.4% larger than in 2019 and 2020 respectively and at 2.75 million tonnes, was the highest-ever month-to-month determine recorded as per information going again to 1998.
Bettering vaccination protection and the opening up of faculties, schools and places of work helped demand, stated Prashant Vasisht, vp and co-head, company rankings at ICRA.
Diesel gross sales, which generally rise forward of the Diwali pageant, rose practically 20% from September to six.61 million tonnes, helped alongside by the quickest month-to-month enlargement within the nation’s manufacturing unit exercise in eight months.
Consumption of diesel, which accounts for about 40% of India’s refined gasoline gross sales, was additionally up 1.5% from October 2020, however down 5.6% year-on-year.
India, Asia’s third-largest economic system, lowered excise responsibility on petrol by 5 rupees ($0.0674) per litre, and that on diesel by 10 rupees ($0.1348) per litre, final week.
The decrease costs and an uptick in financial exercise must also support diesel demand, ICRA’s Vasisht added. In comparison with final yr, gross sales of cooking fuel, or liquefied petroleum fuel (LPG), elevated practically 3% to 2.49 million tonnes, whereas naphtha gross sales fell 5.2% to 1.28 million tonnes. ($1 = 74.1900 Indian rupees) (Reporting by Eileen Soreng, Bharat Govind Gautam and Arundhati Sarkar in Bengaluru; Modifying by Aditya Soni and Arpan Varghese)
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Supply: Live Mint