India’s September fuel demand steady, rising oil prices cloud outlook

India’s September fuel consumption crawled higher month-on-month as economic activity continued to ramp up, government data showed on Wednesday, but soaring global oil prices could stall a recovery in the world’s third-biggest oil importer and consumer.

Fuel consumption, a proxy for oil demand, totalled 15.92 million tonnes last month, up slightly from August and 5.2% higher than in September 2020, data on the Petroleum Planning and Analysis Cell (PPAC) website showed.

But overall, consumption was still 1.7% below September 2019.

Monsoon rains and shipping constraints had prompted a dip in consumption in August.

Petrol sales slipped 3.5% from August, but climbed 6% year-on-year and 9.5% from September 2019.