An increase in demand for diesel was caused by the end of the monsoon season and the beginning of the agricultural season in most of the country.
Preliminary industry data shows that India's fuel sales surged in the first half of October, due to a rise in transportation fuel demand during festival season. In the first half of October, sales of gasoline and diesel increased between 22 and 26% month over month and year over year. As compared to the consumption of 1.05 million tonnes during the same period last year, gasoline sales increased by 22.7% to 1.28 million tonnes during October 1-15.
COVID negatively impacted the first half of October 2020, which was 33.4% lower than pre-pandemic October 1-15, 2019. The demand for goods was higher by 1.3% compared to the first half of September 2022. Diesel sales, the most popular fuel in the nation, increased by 27% in the first two weeks of October compared with the same period last year.
During the period of October 1-15, 2020, consumption increased 16.6%, and before COVID 2019, consumption increased 26.6%. Monthly consumption increased by 6.9 percent after sales dropped by almost 5% in August but recovered in September.
A rise in demand for diesel was attributed to the end of the monsoon season in most of the country and the beginning of the agricultural season.
When it rains, the agricultural sector typically experiences reduced mobility and demand. Irrigation pumps and trucks both use diesel. In addition, the festival season resulted in an increase in demand and economic activity.
As a result of the monsoon and decreased demand, auto fuel sales decreased in July and August. During the summer, more people traveled to cooler regions of the country to escape the heat and took vacations during school breaks, causing a decline in June.
After the aviation industry opened up in India, airport passenger traffic increased slightly, approaching pre-COVID-19 levels. Therefore, during the first half of October, jet fuel (ATF) demand increased by 22.1% over last year's first half.
The October 1-15, 2019 period was 16.5% lower than the pre-COVID period, while it was 64% higher than the corresponding period in 2020. From September 1-15, 2022, PTI reported slightly higher sales than 262,100-tonne consumption.
Despite domestic air travel returning to its pre-COVID level, international air traffic is still suffering because of ongoing restrictions in some nations, the sources say. With economic growth of 7%, India's oil demand has steadily increased since the country relaxed pandemic lockdowns.
LPG sales in the first half of October increased by 9.94% over the same period last year to 1.22 million tonnes. Compared to the same period in 2019, LPG consumption increased by 12.6% and by 5.3%, respectively.