India’s fuel demand hits 9-month high in December
India’s fuel demand hit a nine-month high in December, buoyed by strong industrial activity and rising gasoline consumption driven by strong passenger car sales.
Fuel consumption, which represents oil demand, was about 4% higher month-on-month and up 3.1% year-on-year to 19.60 million tonnes in December, data from the Analytics Department said. and Petroleum Plan (PPAC) of the Indian Petroleum Department. in Monday.
UBS analyst Giovanni Staunovo said: “Demand in India, the third-largest consumer, is growing fastest among major economies by 2022 and that “solid economic growth will see solid growth” Indian demand is also expanding at a solid pace this year.”
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A business survey shows India’s manufacturing sector ended 2022 on a solid footing as business conditions improved at the fastest pace in more than two years while growing in volume. New orders and production increased rapidly.
Diesel sales, which account for about four-fifths of India’s refined fuel demand, rose 6.5 percent in December from a year earlier to 7.78 million tonnes, while gasoline sales rose. 5.9% to 2.98 million tonnes, PPAC data showed.
On a daily basis, gasoline consumption in December increased slightly compared to the previous month.
Passenger vehicle (PV) sales for the month rose about 8.2% to 280,016 units and hit an all-time high of more than 3.43 million units in 2022, said the Federation of Automobile Dealers Associations (FADA). ) said.
The increase in PV sales can be attributed to continued strong demand for utility vehicles (UVs) that have become more popular than entry-level compact vehicles.
“India’s auto sales are currently the third largest light vehicle market in the world. This means that demand will continue to grow over the next few years as the middle class continues to buy cars.” Refinitiv analyst Ehsan Ul Haq said.
Sales of gas or liquefied petroleum gas (LPG) rose 3.9% in December to 2.58 million tons, while naphtha sales rose 0.5% to 1.11 million tons.
Sales of asphalt, which is used to make roads, fell 15.1%, while fuel oil use rose 9.3% last month.
First published date: January 10, 2023, 09:53 AM IST