India’s diesel sales fell 2.3% in January year-on-year, their slowest pace of decline in three months, preliminary data showed on Tuesday, indicating a gradual recovery in industrial growth in Asia’s third-largest economy.
Local diesel sales by state-run refiners have been falling since March, when coronavirus-related restrictions slammed industrial activity and mobility. However, annual demand for diesel saw a temporary rise in October ahead of the country’s festival season.
Diesel consumption, a key parameter linked to economic growth which accounts for about 40% of overall refined fuel sales in India, totalled 6.04 million tonnes January, the data compiled by state retailers showed.
India’s factory activity expanded at its strongest pace in three months in January due to higher demand and output, according to a private survey which also showed firms cut jobs at the slowest pace in 10 months.
