India’s petrol and diesel gross sales progress moderated in April whereas cooking fuel LPG consumption fell as report excessive costs dented demand, preliminary trade knowledge confirmed on Sunday.
Petrol gross sales progress moderated to 2.1 per cent in April in comparison with the identical interval within the previous month, whereas diesel demand was nearly flat. Cooking fuel LPG, which had persistently proven progress even in the course of the pandemic interval, noticed an enormous 9.1 per cent month-on-month drop in consumption throughout April.
State-owned oil companies had on March 22 ended a 137-day hiatus in price revision and started passing a USD 30 per barrel enhance in price of uncooked materials (crude oil) throughout that interval when 5 states together with Uttar Pradesh went to polls.
Petrol and diesel costs rose by Rs 10 per litre between March 22 and April 6 — the highest-ever enhance throughout a 16-day interval since gas costs had been deregulated 20 years again.
On March 22, cooking fuel costs too had been hiked by Rs 50 per cylinder to Rs 949.50 — the highest-ever price for the subsidised gas.
The worth will increase moderated the consumption.
Petrol gross sales by state-owned gas retailers, which management roughly 90 per cent of the market, at 2.58 million tonnes throughout April had been practically 20.4 per cent greater than the identical interval final 12 months and 15.5 per cent greater than the interval in 2019, preliminary trade knowledge confirmed.
The consumption was, nevertheless, simply 2.1 per cent greater than the two.52 million tonnes gross sales in March 2022.
Diesel, the most-used gas within the nation, noticed gross sales leaping 13.3 per cent year-on-year to six.69 million tonnes. This was 2.1 per cent greater than gross sales in April 2019. But this was simply 0.3 per cent greater than 6.67 million tonnes consumption throughout March.
Petrol and diesel gross sales had risen 18 per cent and 23.7 per cent respectively within the first half of March when sellers and shoppers hoarded gas on worth hike expectations.
Diesel gross sales throughout March had been probably the most in any month within the final two years and greater than the overall quantity of diesel bought in April 2020 when the nation was beneath an entire lockdown.
Industry sources mentioned whereas there was a panic shopping for by particular person automobile homeowners within the first half of March, petrol pump sellers topped up not simply their storage tanks but in addition any cell browser or tanker truck they’d. The sellers hoped to make a fast buck by shopping for gas at a decrease price and promoting at revised greater costs.
As costs had been raised, consumption fell.
Petrol and diesel costs hit the freeze button simply as electioneering for 5 states together with Uttar Pradesh picked up in early November 2021. The report 137-day freeze ended on March 22.
Jet gas (ATF) gross sales rose 28.3 per cent to 500,400 tonnes in April however had been 29.2 per cent lower than pre-COVID ranges of 2019. They had been, nevertheless, 5.1 per cent greater than the gross sales in March 2022.
ATF gross sales are anticipated to choose up with the entire opening up of air journey.
India went in for an entire lockdown, stopping flights, halting rail and highway actions and shutting companies, within the final week of March 2020 to include the unfold of coronavirus. The March 2020 interval was close to regular as COVID restrictions had been simply kicking in.
The authorities gave free LPG cylinders throughout 2020 to assist poor struggle the fallout of the stringent lockdown. This helped state oil companies register progress month after month whilst different transport gas noticed extreme demand contraction.
But in April, LPG consumption fell 9.1 per cent month-on-month to 2.2 million tonnes. This was 5.1 per cent greater than April 2021.
Cooking fuel gross sales moderated after a Rs 50 per cylinder hike in costs on March 22. LPG gross sales had risen by 17 per cent within the first half of March.
Source: www.financialexpress.com”