Hoarding on price hike expectation leads to surge in petrol, diesel sales

NEW DELHI: India’s auto fuel sales surged past pre-pandemic levels in the first half of March as consumers and dealers topped tanks in anticipation of a likely price hike post assembly elections.
Dealers, as well as the public, topped up their tanks as they anticipated prices, that have been put on hold in the run-up to the elections in states like Uttar Pradesh, will rise by a big margin to make up for as much as 60 per cent surge in the cost of raw material.
Petrol sales by state-owned fuel retailers, which control roughly 90 per cent of the market, at 1.23 million tonnes during March 1-15 were nearly 18 per cent higher than the same period last year and 24.4 per cent higher than the period in 2019, preliminary industry data showed.