News Oil & Gas

India fuel demand falls 2% in November


India’s overall fuel demand dropped 2% year-on-year in November, driven by a 3% decline in diesel sales, petroleum ministry data showed.

Petrol and jet fuel sales, however, grew around 9% and 12%, respectively, in November over the same period last year, aided by increased leisure travel in the festive season. Strong vehicle sales also contributed to petrol sales, which accounts for 17% of the country’s overall refined products sales volume.

Sales of diesel, which make up 40% of the overall volumes, contracted in November after rising by 6.6% in the April-October period. Diesel sales are driven more by commercial mobility as the share of diesel vehicles in passenger cars has significantly declined over the years.

The demand for diesel usually rises ahead of the festival season as factories work overtime to produce goods, and retailers use trucks to stock up. This year both Diwali and Durga Puja were a little delayed, stretching up to the middle of November, unlike last year when both festivals were celebrated in October. This brings variance in fuel demand and leads to imperfect monthly sales comparisons. The timing and intensity of rainfall also affect diesel demand.

The demand for bitumen, used for building roads, fell 31% in November while the sales of more polluting but cheaper petcoke and fuel oil dropped 5% and 11%, respectively.

Fuel sales growth (Y-o-Y) in November:

Petrol 9.4%
Diesel -3%
ATF 11.6%
LPG 1%
All refined products -2%

Source: Petroleum Ministry


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