Monthly fuel demand in India was the lowest since November 2021 in September, government data released on Friday showed. Total monthly fuel demand in September fell 3.6% from August, although it rose 8.1% from September 2021. Looking at the decline in Indian oil demand, some of that had to do with seasonal refinery maintenance, not necessarily a softening of the economy,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
“We expect Indian demand to pick up here very, very soon as we get into the winter.” Fuel consumption, an indicator of oil demand, totaled 17.18 million tonnes in September, up from 15.89 million tonnes a year earlier, data from the petroleum ministry’s Petroleum Planning and Analysis Cell (PPAC) showed.
Sales of diesel, or gasoline, rose about 13.4% year-on-year to 6.26 million tons, but fell 1.4% month-on-month to a yearly low. Gasoline, or gasoline, sales were 8.8% higher than a year earlier at 2.83 million tons. Preliminary sales data earlier this month showed sales of gasoline and gasoline by India’s state refiners rose sharply in September from a year earlier, signaling a pick-up in industry activity ahead of the festive season from October.
Sales of bitumen, used to make roads, rose 16% in September, while fuel oil consumption rose slightly by 9%. Sales of cooking gas or liquefied petroleum gas (LPG) rose 3.5% to 2.45 million tonnes, while diesel sales fell 6.4% to 1.08 million tonnes. India’s state refiners plan to freeze more of their oil futures on fears that tougher Western sanctions on Russia, including those from the EU, could limit future supplies in already tight markets, state refinery sources said this week.
