The nation’s September gas consumption crawled greater 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 this planet’s third-biggest oil importer and shopper.
Fuel consumption, a proxy for oil demand, totalled 15.92 million tonnes final month, up barely from August and 5.2 per cent greater than in September 2020, information on the Petroleum Planning and Analysis Cell (PPAC) web site.
But 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.
Increased private mobility drove petrol demand, “which has clearly moved above pre-COVID levels”, mentioned Hetal Gandhi, director at CRISIL Research.
Consumption of diesel, which common accounts for about 40 per cent of refined gas 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.
But diesel gross sales rose barely from the identical interval final 12 months. “While overall diesel demand still remains below pre-COVID levels, a recovery is in line with a rush ahead of the festive season,” Gandhi added.
However, hovering world crude costs might gradual 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 recovery in demand from here, but high oil prices could pose a serious problem for Indian consumers,” 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. Sales of bitumen, used for making roads, have been up 7.2 per cent, whereas gas oil use rose 21 per cent.
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