Petrol sales up 9.3 percent in December; diesel down 2.8 percent, jet fuel by 41 percent
NEW DELHI: Petrol sales increased 9.3% year-on-year in December while diesel demand fell 2.8%, reflecting varying recovery paths for the two transportation fuels in the country.
Demand for all refined products fell 1.8% in December from a year earlier, signalling that the country's oil market had come a long way from nearly 50% contraction in April due to the lockdown but was yet to fully recover to the pre-pandemic level.
A slower recovery in diesel, which makes up 40% of oil demand in the country, indicated that economic activity was picking up but only gradually, said an industry executive. Diesel is primarily used in the transport of NSE -1.41 % goods, and a slower recovery means sluggish demand growth in the domestic and export markets. India's exports fell 0.8% year-on-year in December, as per preliminary government data.
Passenger vehicle sales accelerated 18% year-on-year in December, as per industry estimates.
But much of its benefit went to petrol-driven cars as diesel was no more favoured by new buyers of cars. People's preference for the personal vehicle to avoid crowded public transport amid the pandemic contributed to increased sales of petrol.
Jet fuel sales fell 41% in December from the previous year.
The Economic Times 11-01-2021