Diesel sales jumped 8.8% over the last year in the first fortnight of October while petrol rose 1.5%, signalling a strong recovery for the economy ahead of the festive season despite the thick gloom of the coronavirus pandemic.
This is the first time since the onset of the pandemic that diesel sales have grown over last year. Petrol had already recovered to pre-Covid levels in September.
Diesel sales rose 24.5% in the first half of October compared with the same period of September. Petrol sales rose 1.4% compared with the previous month.
The demand for aviation turbine fuel rose 3.8% from the previous month but was down 57% from a year earlier as international flight restrictions stayed in place. Cooking gas registered 3% month-over-month growth and 7% year-over-year growth.
The sharp recovery in diesel sales shows increased transport of goods ahead of festive season and pick up in industrial activity, oil industry executives said. Online and offline retailers usually stock up ahead of the festive season, driving up demand for transportation fuel. The festive season that begins with Navratri starting Saturday and goes on until the end of the Year normally sees heavy promotional sales by retailers.
Sale of cars and two-wheelers are already roaring and expected to rise further this month, boosting demand for petrol and diesel. Car sales jumped 26% and two-wheelers 12% in September over the last year. India’s exports also rose 6% in September over the last year, driven by sharp growth in shipments of iron ore, garments and drugs.
“People are tired of the virus and dying to get back to normal life, boosting domestic demand for consumer goods and cars,” said an industry executive.
People’s preference for personal vehicles to avoid crowded public transport during the pandemic has also boosted demand for petrol.
Quick recovery in fuel demand has pushed up runs at refineries, which earlier faced the double whammy of weak domestic demand and an oversupplied export market.
