India’s diesel and petrol sales rose in February compared to the previous month, with preliminary fuel sales data showing a sign of recovery in industrial activity as states lift COVID 19-led restrictions.
Local sales of auto fuels were also higher, as retail prices of petrol and diesel have not increased since November due to assembly elections in major states, despite a rise in global oil and refined fuel prices.
In addition, India’s consumption of petrol and diesel generally increases during elections as political parties use vehicles for mass campaigning. The seven phases of polling that began on February 10 for the assembly elections in five states will end on March 7. Diesel sales by the country’s state fuel retailers stood at 5.75 million tonnes last month, data compiled by the state-owned refiner showed, up 21.4% from January
However, diesel sales were down about 1% compared to a year ago and around 5% from February 2020.
Diesel sales, which account for about two-fifths of India’s total refined fuel consumption, are directly linked to industrial activity in Asia’s third-largest economy.
Petrol sales in February stood at around 2.3 million tonnes, up 23.8% from January and nearly 3.3% over a year ago, as people prefer to use private vehicles over public transport for safety reasons, according to the data. It shows.
State retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own nearly 90% of the country’s retail fuel outlets.