As the Indian market is enjoying the festive season, the demand for several goods and services has increased. However, preliminary industry data on fuel demand has received particular attention. According to a report by PTI, fuel sales in India increased in the first half of October thanks to the pick-up in economic activity due to the festive season.
According to the PTI report, gasoline and diesel sales jumped 22-26% year-on-year (YoY) while also increasing month-on-month in the first half of the year. October 2022. As for the numbers, gasoline sales increased by 22.7% to 1.28 million tons from October 1 to 15, 2022, in particular compared to 1.05 million tons consumption over the same period but in 2021.
Fuel sales were now 31% higher than the first half of October 2020 and 33.4% higher than pre-pandemic from October 1-15, 2019, reports PTI. In addition to sales, even demand was 1.3% higher than in the first half of September 2022.
After sales and demand, as far as consumption is concerned, it increased by 16% from October 1 to 15, 2020 and by 26.6% compared to pre-COVID 2019 levels. sales down nearly 5% in August, it has now seen demand rise 6.9% month-on-month, according to PTI.
Leaving aside the numbers, several industry experts attributed the reasons to the end of the monsoon season and the progression of the agricultural season. Due to the rains, mobility and demand tend to be hampered and hence the demand for diesel tends to drop. Consequently, according to the PTI, automotive fuel sales also declined in July and August due to rains and lower demand.
Since the aviation sector also opened up, overall passenger traffic at the country’s airports has also increased and slowly recovered to pre-pandemic levels, PTI reports. It also adds that jet fuel (ATF) demand jumped 22.1% in the first half of October compared to the same period last year. However, international traffic would be lagged due to restrictions in some countries.