Fuel consumption, a proxy for oil demand, totaled 18.27 million tonnes last month, according to data from the Petroleum Planning and Analysis Cell of the Indian oil ministry.
see photosAnnual growth is on a lower basis as demand was lower in May 2021 as the lockdown
Fuel consumption in India rose 23.8 per cent in May from a year ago, continuing the recovery from a relatively low base in 2021 when the world’s third-largest oil consumer was battling a second wave of COVID-19. Fuel consumption, a proxy for oil demand, totaled 18.27 million tonnes last month, according to data from the Petroleum Planning and Analysis Cell of the Indian oil ministry. Last month’s growth was the biggest year-on-year jump since April 2021. Consumption also grew marginally by 0.4 per cent from April.
Refinitiv analyst Ehsan-ul-Haq said the annual increase is “due to a lower base, as demand was lower due to higher COVID cases at that time in May 2021,” although the monthly increase was surprising.
“However, higher oil prices are likely to impact consumption in the next few months. Higher fuel prices do not bode well for motorists across the world,” he added.
Diesel consumption rose 31.7 per cent year-on-year to 7.29 million tonnes in May and was nearly 32.6% higher than two years ago.
Petrol sales in India are on the rise since the easing of the pandemic lockdown in the country
Sales of gasoline, or petrol, stood at 3.02 million tonnes, up 51.5 percent from a year earlier.
Meanwhile, Indian state refiners’ daily gasoil sales declined in April to May as lower consumer spending curtailed truck movement in the country, preliminary fuel sales data showed on June 1.
India’s gasoline sales have been on the rise since the country’s easing of pandemic lockdowns, as people continue to use private vehicles on public transport for safety reasons and to avoid heat waves.
India’s retail inflation declined marginally in May, but probably remained above the central bank’s upper tolerance limit for the fifth straight month, according to a Reuters poll, as fuel prices tumbled due to cuts in fuel prices.
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