India’s Petrol Sales Rise 5% In June, Cooking Gas Demand Up 9%

The nation’s gasoline demand recovered final month after slumping to a nine-month low in May, as restrictions to curb the unfold of the pandemic have been eased and mobility picked up.

Fuel consumption, a proxy for oil demand, rose eight per cent from May to 16.34 million tonnes, knowledge from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas confirmed on Friday.

A second COVID-19 wave, which stalled mobility and dulled financial exercise, dragged gasoline consumption to its lowest since August in May.

Pandemic infections have, nevertheless, eased from May’s peak, prompting a 1.5 per cent year-on-year improve in gasoline demand final month.

“Going forward we see road fuel demand reaching pre-pandemic levels by the end of the year since the vaccination program has already come a long way,” stated Rystad analyst Simen Eliassen, including that jet gasoline may additionally get well by 115,000 bpd.

However, Eliassen cautioned that new coronavirus variants and mutations may pose a threat to the restoration.

A senior authorities official stated on Friday India’s devastating second coronavirus wave was not but over. Concerns over a brand new Delta Plus COVID-19 variant has additionally clouded the nation’s financial outlook.

Diesel consumption, which accounts for about 40 per cent of India’s refined gasoline gross sales, fell 1.6 per cent 12 months on 12 months to six.20 million tonnes, however rose 12 per cent from May.

Sales of petrol, elevated by about 5.7 per cent from the identical interval final 12 months and jumped 21 per cent from May to 2.41 million tonnes.

Sales of cooking fuel, or liquefied petroleum fuel (LPG), rose 9.7 per cent to 2.26 million tonnes year-on-year, whereas naphtha gross sales dropped by about 3.1 per cent to 1.19 million tonnes.

Sales of bitumen, used for making roads, have been down 32 per cent from a 12 months in the past, whereas gasoline oil rose 1.9 per cent.