India’s fuel demand hits eight-month high in November
According to a Reuters report, India’s fuel demand surged to an eight-month high in November 2022. The report claims that fuel demand in India picks up as festivals and surges increase. industrial activity has boosted sales in the world’s third-largest oil consumer. It also stated that fuel consumption in India increased by 2.4% in November, while it increased to 18.84 million tons last month, up 10.2% from the same month a year ago. .
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Every year, the festive season usually increases fuel demand, as people consider this time of year to be a good time to buy a new car. In addition, holidays during this season boost tourism activities across the country, which ultimately leads to higher demand for gasoline and diesel. The report cited analysts claiming that high fuel consumption will continue in the coming months.
The report further revealed that diesel sales, which account for about four-fifths of India’s refined fuel demand, grew 19.1% from 2021 to 7.76 million tonnes, while gasoline sales increased 8.1% to 2.86 million tons in November 2022. The increase in diesel sales indicates higher transportation activity nationwide, as most of the transportation industry runs on this fuel. The increase in fuel demand by the private and public transport sectors, along with the recovery from the monsoon season, were notable in November this year.
Interestingly, vehicle sales across India witnessed positive growth in November 2022. A wide range of new vehicle launches, attractive offers, festive season and positive buyer sentiment helped boost car sales in the country, which further boosted fuel demand. In November 2022, the Indian auto industry recorded a sales growth of 31.3% to 322,070 units compared to 245,214 units sold in November 2021.
First published date: December 12, 2022, 5:58 PM IST