New Delhi: fuel demand rose to a three-year high in March petrol sales Reaching an all-time peak, as the market supplied price increases, the outlook for the country’s post-pandemic economic recovery remains promising.
Fuel consumption, a proxy for oil demand, rose 4.2% to 19.41 million tonnes from the same month last year, the highest since March 2019, according to April 9 data from the country’s oil ministry’s petroleum planning and analysis cell. is the most.
“March oil demand was strongly supported by stockpiling activity/hoarding in anticipation of a month-end increase in petrol and diesel prices,” said UBS analyst Giovanni Stanovo.
Preliminary data this month showed state refiners’ sales of gasoline and gasoline rose in March on rising demand from dealers and consumers ahead of an expected sharp rise in retail prices after elections in key states.
“So this (higher prices) will likely weigh on demand prospects in the near term, but with the economy still expanding, oil demand is likely to continue to improve in the coming months,” Stonovo said.
Petrol or petrol sales were up 6.2% from 2.91 million tonnes a year ago, the highest ever as per 1998 figures.
To cushion the rising cost of oil imports, India has turned to Russian barrels that are available at a steep discount, citing “national interests”.
As of last week, Indian refiners have bought at least 16 million barrels of cheaper Russian oil for May loading, the same as purchases for the whole of 2021, according to Reuters calculations.
“Russian oil imports have kept India’s economy on track, which is emerging from its pandemic slowdown,” said Jeffrey Healy, chief market analyst at OANDA.
Fuel consumption, a proxy for oil demand, rose 4.2% to 19.41 million tonnes from the same month last year, the highest since March 2019, according to April 9 data from the country’s oil ministry’s petroleum planning and analysis cell. is the most.
“March oil demand was strongly supported by stockpiling activity/hoarding in anticipation of a month-end increase in petrol and diesel prices,” said UBS analyst Giovanni Stanovo.
Preliminary data this month showed state refiners’ sales of gasoline and gasoline rose in March on rising demand from dealers and consumers ahead of an expected sharp rise in retail prices after elections in key states.
“So this (higher prices) will likely weigh on demand prospects in the near term, but with the economy still expanding, oil demand is likely to continue to improve in the coming months,” Stonovo said.
Petrol or petrol sales were up 6.2% from 2.91 million tonnes a year ago, the highest ever as per 1998 figures.
To cushion the rising cost of oil imports, India has turned to Russian barrels that are available at a steep discount, citing “national interests”.
As of last week, Indian refiners have bought at least 16 million barrels of cheaper Russian oil for May loading, the same as purchases for the whole of 2021, according to Reuters calculations.
“Russian oil imports have kept India’s economy on track, which is emerging from its pandemic slowdown,” said Jeffrey Healy, chief market analyst at OANDA.