diesel: Petrol demand surges 8% over pre-pandemic level in Sept fortnight, diesel sluggish – Times of India
[ad_1]
NEW DELHI: Petrol consumption continued its surge in the first fortnight of September, rising more than 8% from the same period of pre-pandemic 2019 but growth in diesel sales remained sluggish as rains subdued demand.
Sales data shows a surprise double-digit growth from a year ago in jet fuel demand on the back of a resurgence in domestic tourism, but it was still not enough to reach the pre-pandemic level. Sales rose more than 29% from a year ago and 8.7% from the same period of August but was 41% short of the comparative period of 2019.
Petrol sales were 5.7% higher than the same period of 2020 and 3.4% more than the first fortnight of August, boosted by easier inter-state travel norms on the back of rapid vaccination and people’s preference for personal vehicles.
In contrast, demand for Diesel, the fuel used the most, continued to drag at nearly 7% lower than the comparative period of 2019 and about 1.5% from a year ago. On monthly basis too, sales in the September fortnight were down by about 1% from the same period of August.
Consumption of LPG, which is also supplied as household cooking gas, topped the pre-pandemic level by nearly 15%, while growth appeared muted at roughly 2% compared to a year ago and about 9% higher than August.
Industry executives remained unfazed by the sluggish growth in diesel demand, describing it as a “seasonal” phenomena. Shrikant Madhav Vaidya, chairman of the country’s largest fuel retailer, sees demand for motor fuels topping pre-pandemic level in the next quarter, “hopefully” by Diwali, though he admits that jet fuel will take a little more time.
“Diesel demand drops during monsoons every year as good rains dry out demand from the farm sector (for running irrigation pumps). Floods disrupt freight movement and construction activities. Even large infrastructure projects are affected. All these sectors are large diesel consumers,” one oil company executive said.
Sales data shows a surprise double-digit growth from a year ago in jet fuel demand on the back of a resurgence in domestic tourism, but it was still not enough to reach the pre-pandemic level. Sales rose more than 29% from a year ago and 8.7% from the same period of August but was 41% short of the comparative period of 2019.
Petrol sales were 5.7% higher than the same period of 2020 and 3.4% more than the first fortnight of August, boosted by easier inter-state travel norms on the back of rapid vaccination and people’s preference for personal vehicles.
In contrast, demand for Diesel, the fuel used the most, continued to drag at nearly 7% lower than the comparative period of 2019 and about 1.5% from a year ago. On monthly basis too, sales in the September fortnight were down by about 1% from the same period of August.
Consumption of LPG, which is also supplied as household cooking gas, topped the pre-pandemic level by nearly 15%, while growth appeared muted at roughly 2% compared to a year ago and about 9% higher than August.
Industry executives remained unfazed by the sluggish growth in diesel demand, describing it as a “seasonal” phenomena. Shrikant Madhav Vaidya, chairman of the country’s largest fuel retailer, sees demand for motor fuels topping pre-pandemic level in the next quarter, “hopefully” by Diwali, though he admits that jet fuel will take a little more time.
“Diesel demand drops during monsoons every year as good rains dry out demand from the farm sector (for running irrigation pumps). Floods disrupt freight movement and construction activities. Even large infrastructure projects are affected. All these sectors are large diesel consumers,” one oil company executive said.
[ad_2]
Source link
