India's petrol sales rise 2% on year, diesel decline 7.3%: Industry data

NEW DELHI: Petrol sales rose 2 per cent in September from a year earlier while diesel consumption was 7.3 per cent lower in a sign that oil demand recovery was on track despite record monthly rise in Covid cases in the country.
Petrol made a smart recovery in September after being down 7.4 per cent in August from a year earlier. Petrol sales gained 10.5 per cent in September over August, as per sales data from state-run oil companies that control nearly 90 per cent of the fuel retail market.

Diesel registered an even more dramatic recovery with sales rising 22 per cent in September over August. In August, diesel sales were down 21 per cent from a year earlier.

Jet fuel sales were 53 per cent lower in September from a year earlier but 23.5 per cent up compared to August as airlines flew more domestic passengers but international flights remained restricted. Cooking gas demand rose 5.3 per cent year-on-year and 3.6 per cent month-on-month.

Industry executives attributed the recovery in petrol and diesel consumption to easing of most lockdown restrictions and people’s willingness to get back to their normal lives despite rising Covid infection. Covid positive cases have crossed 60 lakh in India and related deaths are close to one lakh.

More and more people are going to work and preferring their personal vehicles to crowded public transport for commuting, pushing up demand for petrol, an executive said. “But more importantly, people seem to be tired of living in fear and confining themselves to home. Many of them are venturing out, not just for work but also for pleasure, hoping they will never get infected or if they do, they will recover,” he added.

Increased economic activity and easier inter-state transport have aided diesel consumption. Price cuts of nearly Rs 3 per litre for diesel and Rs 1 for petrol in September also helped demand recovery, said executives who are hopeful of higher sales in October with the onset of the festive season when traditionally demand for fuels and most consumer goods rise.