Diesel sales top pre-Covid levels by 7%, but LPG slips

NEW DELHI: India’s diesel consumption increased 7% from a year ago in the first fortnight of March but demand for LPG, or household cooking gas supplied in cylinders, dropped more than 3% to coincide with a steep rise in refill prices and removal of subsidy.
Data from state-run fuel retailers, who dominate 90% of the market, show petrol sales rising over 5% from a year ago, boosted by car sales snapping the pandemic blues in February and people going back to using their personal vehicles on resurgence of Covid-19 cases in several states.
This is the first yearly growth in diesel sales since October 2020, reinforcing the view that the economy is on its way to recovery as its consumption is one of the key indicators of economic activity.
In February, diesel demand had slid 8% and petrol consumption declined 2% in February from a year ago. In December, sales had for the first time since October recorded a monthly decline at 6%.