India: Festive season drives up consumer demand for fuel and improved runs at refineries

  • Diesel sales climbed 6.6% and petrol rose 4% y/y in Oct 20 as the festive season drove up consumer demand and perked up the economy.
  • Diesel witnessed its first monthly rise in Oct 20 since the onset of the pandemic earlier in 2020 that severely hurt demand for transportation fuels. Compared to Sep 20, the demand recovery looked even more dramatic with diesel rising 27.5% and petrol 8.5%, according to provisional sales data from state-run oil companies that control 90% of the fuel retail market.
  • Demand for jet fuel too recovered 13% m/m with the number of flights increasing but is still down 50% y/y. Cooking gas consumption rose 7% m/m and 3.8% y/y.
  • The festive season-fuelled consumer demand has increased goods transportation across the country, driving up diesel sales, an industry executive said. With manufacturing and commercial activity rising, more vehicles are on the road, increasing demand for fuels.

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