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Petrol sales up 36 per cent, diesel 20 per cent in June
Sales for petrol, diesel, jet fuel and cooking gas rose a combined 16 per cent in June from May as the lockdown restrictions eased in the country but were still 14 per cent lower than the sales in the same month last year.
The demand for diesel, which makes up 40 per cent of the country’s total oil demand, was 20 per cent higher in June than May, indicating increased long-haul transportation and rising economic activity. The sales, however, were still 17 per cent less than in June 2019.
Petrol sales soared 36 per cent in June from May but were 15 per cent lower than the year-ago period. Jump in consumption of petrol, mostly used by cars and bikes for shorter distances, means more people came out of their homes and drove to their workplaces in June, an industry executive said.
The recovery in transportation fuel demand has been sharper than initially expected partly because the public transport is not fully operational yet in most places, forcing commuters to use private vehicles, the executive said.
The demand for jet fuel is also returning, albeit slowly, with the resumption of domestic flights. Jet fuel sales in June rose 83 per cent over May but were down 67 per cent from a year ago. Addition of new domestic flights and resumption of international flights could further push up jet fuel demand, the executive said.
The demand for cooking gas, or the liquefied petroleum gas (LPG), fell 9 per cent from May but was up 17 per cent from June last year.
The data is for sales by state fuel retailers who control about 90 per cent of the market.
The oil demand is expected to rise further in July as more factories and offices open and more vehicles get on the road. Indian Oil Corp, the nation’s largest refiner, expects its refinery run rate to rise to 100 per cent by July-end from the current 90 per cent.
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