The nation’s September gas consumption crawled greater month-on-month as financial exercise continued to ramp up, authorities information confirmed on Wednesday, however hovering international oil costs might stall a restoration on the earth’s third-biggest oil importer and shopper.
Gas consumption, a proxy for oil demand, totalled 15.92 million tonnes final month, up barely from August and 5.2 per cent greater than in September 2020, information on the Petroleum Planning and Evaluation Cell (PPAC) web site.
However general, consumption was nonetheless 1.7 per cent beneath September 2019. Monsoon rains and transport constraints had prompted a dip in consumption in August.
Petrol gross sales slipped 3.5 per cent from August, however climbed six per cent year-on-year and 9.5 per cent from September 2019.
Elevated private mobility drove petrol demand, “which has clearly moved above pre-COVID ranges”, mentioned Hetal Gandhi, director at CRISIL Analysis.
Consumption of diesel, which typical accounts for about 40 per cent of refined gas gross sales, additionally eased 1.7 per cent month-on-month to five.51 million tonnes, and was 5.6 per cent decrease in contrast with September 2019.
However diesel gross sales rose barely from the identical interval final 12 months. “Whereas general diesel demand nonetheless stays beneath pre-COVID ranges, a restoration is in step with a rush forward of the festive season,” Gandhi added.
Nevertheless, hovering international crude costs might sluggish the rebound, with India signalling late final month that elevated international oil costs might additionally pace up the transition to various vitality sources. [O/R]
“I see a gradual restoration in demand from right here, however excessive oil costs might pose a major problem for Indian shoppers,” Refinitiv analyst Ehsan Ul Haq mentioned.
Versus a 12 months in the past, gross sales of liquefied petroleum gasoline (LPG) elevated 4.5 per cent to 2.36 million tonnes, whereas naphtha gross sales fell 0.5 per cent to 1.11 million tonnes. Gross sales of bitumen, used for making roads, had been up 7.2 per cent, whereas gas oil use rose 21 per cent.
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