Fuel consumption in India, an indicator of oil demand, rose to a four-month high in the festival month of October, data from the petroleum ministry’s Petroleum Planning and Analysis Cell (PPAC) showed on Monday. Consumption was 6.7% higher in October than the previous month, while also rising 3.4% year-on-year to 18.37 million tonnes. The data suggests that “the negative impact of the monsoon season is now coming to an end,” Refinitiv analyst Ehsan Ul Haq said.
“I expect fuel demand to grow significantly as car sales have increased. With several refineries coming back from maintenance, crude volumes will also increase,” Ul Haq added. “Overall a positive outlook and the best is yet to come.” India celebrated the major festivals of Dussehra and Diwali last month, buying everything from cars, homes and televisions to travel and jewelry, according to early data, fueling growth prospects despite economic gloom elsewhere in the world.
Diesel sales by India’s state-owned fuel retailers also rose in October from the previous month, preliminary sales data last week showed indicating a recovery in industry activity. Gasoline, or gasoline, sales rose 8.8% to 2.99 million tonnes from 2021, while diesel rose 5.5% to 6.98 million tonnes, PPAC showed. Sales of cooking gas or liquefied petroleum gas (LPG) fell 3.3% to 2.40 million tonnes, while diesel sales fell 24% to 0.96 million tonnes. Sales of road-making bitumen were 11.4% lower in October, while fuel oil consumption rose slightly by 1%.
