New Delhi: Petrol and diesel demand in India has declined in the first half july The onset of monsoon has reduced consumption and restricted mobility in some areas compared to the previous month, preliminary industry data showed on Sunday.
Consumption of diesel, the most used fuel in the country, declined by 13.7 per cent to 3.16 million tonnes during July 1-15, from 3.67 million tonnes in the same period last month.
The arrival and intensity of monsoon weighs heavily on diesel demand in the country and consumption is traditionally lower in July-September than in April-June. Floods disrupt mobility and demand from the agricultural sector, which uses diesel in irrigation pumps and trucking, diminishes with the onset of rains.
Although diesel demand was up about 27 per cent year-on-year, supported by strong economic growth and a relatively low baseline for the same period in 2021, when a second wave of COVID-19 hit the economy.
The data shows that diesel consumption during July 1 to 15 of 2020 was 43.6 per cent higher than the demand of 2.2 million tonnes. This was 13.7 per cent higher than before July 2019.
Petrol sales fell 7.8 per cent to 1.27 million tonnes in the first half of July, as against 1.38 million tonnes in the same period last month.
However, consumption was 23.3 per cent higher as compared to July 2021 and 46 per cent higher as compared to the first fortnight of July 2020. This was 27.9 per cent higher than before July 2019.
Auto fuel demand in June was supported by an increase in summer travel to cooler regions of the country and educational institutions to avoid holidays during the annual holiday.
As the aviation sector opens up, India’s overall passenger traffic (both domestic and international) at airports approached pre-COVID-19 levels.
Accordingly, jet fuel (ATF) demand grew by 77.2 per cent to 247,800 tonnes during July 1 to 15, as compared to year-on-year. It was 125.9 per cent higher than July 2020, but 17.7 per cent lower than pre-covid July 2019. Month-on-month, sales declined 6.7 percent.
India’s oil demand has been rising steadily since the pandemic lockdown was eased in the country, with strong economic growth of 7.1 per cent.
“Monsoon months are traditionally low consumption months, but overall oil demand will continue on its growth trajectory for the rest of the year,” said an industry official.
The government had imposed a nationwide lockdown on March 25, 2020, to control the spread of coronavirus. The complete lockdown, which halted mobility and paralyzed business, was gradually eased after two months.
kitchen gas kitchen gas Sales in the first half of July increased by 14.15 per cent year-on-year to 1.24 million tonnes. This is despite the increase in prices by Rs 50 per cylinder.
LPG consumption was 16.6 percent higher as compared to July 2020 and 8.6 percent higher as compared to July 2019.
The data showed that the month-on-month demand grew by 8.3 per cent as compared to LPG consumption of 1.15 million tonnes during the first half of June.