India's fuel consumption drops to 10-month low in September

10 Oct 2022 , 01:29 PM

In September, India’s monthly fuel demand fell to its lowest level since November 2021, according to government data released on Friday. Although it was up 8.1% when compared to September 2021, the total monthly gasoline demand in September decreased by 3.6% from August.

Fuel consumption, a proxy for oil demand, increased to 17.18 million tonnes in September from 15.89 million tonnes a year earlier, according to information from the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC). Diesel, or gasoil, sales increased by roughly 13.4% on an annual basis to 6.26 million tonnes, but they decreased by 1.4% month over month to a one-year low.

At 2.83 million tonnes, gasoline sales were 8.8% higher than they had been a year prior. According to preliminary sales statistics from earlier this month, sales of gasoline and gasoil by Indian state refiners increased significantly in September compared to the same month the previous year, indicating a rise in industrial activity ahead of the holiday season beginning in October.

Fuel oil use increased by 9% in September, while bitumen sales, which are used to build roads, increased by nearly 16%. Sales of cooking gas, also known as LPG, rose 3.5% to 2.45 million tonnes, while those of naphtha decreased 6.4% to 1.08 million tonnes. According to sources at state refiners this week, Indian refiners intend to lock in more of their crude supply in long-term agreements out of concern that stronger Western sanctions on Russia, especially those from the EU, may limit future supplies in already constrained markets.

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