Consumption of petrole um products grew at the quickest pace on a monthly basis in five years during August, rising over11 per cent year-on-year (y-o-y) to nearly 16 million tonnes. It had increased 9.5 per cent y-o-y on an average in the preceding three months.Analysts tracking the sector attributed the surge in petrol consumption to the ban on diesel vehicles in the NCR (National Capital Region) and increased sales of two-wheelers and passenger vehicles.
Both diesel and petrol led the way, growing at 14 per cent and 25 per cent respectively on a y-o-y basis during the month. Diesel consumption surged to a near five-year high on a monthly basis in August, primarily driven by commercial transportation.
“Consumption of other industrial and commercial pro ducts such as fuel oil, petcoke and aviation turbine fuel (ATF), also surged, pointing to robust economic activity ,” analysts at Religare Securities said. “This, coupled with a higher demand for other industrial fuels, indicates improving economic activity, though the uptick may be reflected in other macroeconomic data with a lag,” they said.
The analysts added, “The rising retail preference for petrol, especially in urban areas, with the added benefits of using economical CNG (compressed natural gas) through a kit could be another key driver for growth.” LeSean McCoy Authentic JerseyShare This