JOIN USIndia's October fuel demand rises on festive season boost
India's fuel consumption, a proxy for oil demand, rose to its highest in four months in the festival month of October, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed on Monday.
Consumption in October was 6.7 per cent higher than the previous month, while also up 3.4 per cent year-on-year at 1.837 crore tonnes, the data showed. The data indicates 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 picked up. With several refineries coming back from maintenance, crude runs will also increase," Ul Haq added.
"On the whole, 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, houses and television sets to travel and jewellery, according to early data, giving a fillip to growth prospects despite economic gloom elsewhere in the world.
State fuel retailers' diesel sales also surged in October from the previous month, preliminary sales data showed last week, indicating a pickup in industrial activity. Sales of petrol were up 8.8 per cent from 2021 at 2.99 million tonnes, while diesel rose 5.5 per cent at 6.98 million tonnes, the PPAC showed.
Cooking gas or liquefied petroleum gas (LPG) sales decreased 3.3 per cent to 2.40 million tonnes, while naphtha sales fell 24 per cent to 0.96 million tonnes. Sales of bitumen, used for making roads, were 11.4 per cent lower, while fuel oil use edged up 1 per cent in October.