Diesel sales rise in December, but Omicron seen dampening demand

Indian state refiners’ daily diesel sales rose in December from the previous month but a rapid surge in infections due to the Omicron coronavirus variant could hit fuel demand in Asia’s third largest economy.

State retailers sold about 208,150 tonnes of diesel a day in December, up 8.75% from November and 1.48% higher than the same month last year, preliminary sales data compiled by the industry showed.

However, it represented a 1.60% decline versus December 2019, before the COVID-19 pandemic had spread globally.

Movement of diesel-consuming trucks in India picked up in December as more fruits and vegetables were transported across the country than usual that month, while factory output and exports continued to grow, truckers association Indian Foundation of Transport Research & Training said in a statement.