New Delhi: India’s fuel sales fell in the first half of April as a record rise in prices in a short span of 16 days dented demand, preliminary industry data showed on Saturday. Petrol sales fell nearly 10 per cent in the first half of April, compared to the same period last month, while diesel demand declined by 15.6 per cent.
Even the cooking gas LPG, which had shown steady growth even during the pandemic period, saw a month-on-month decline of 1.7 per cent in consumption during April 1-15.
State-owned oil companies ended a 137-day hiatus in the rate revision on March 22 and started passing on an increase of USD 30 per barrel in the cost of raw materials (crude oil) during the period when the North Elections were held in five states including the state.
Petrol and diesel prices increased by Rs 10 per liter between March 22 and April 6 – the highest increase in a 16-day period since deregulation of fuel prices two decades ago.
On March 22, cooking gas prices also increased from Rs 50 per cylinder to Rs 949.50 – the highest rate for subsidized fuel.
Jet fuel prices also climbed to an all-time high of Rs 1,13,202.33 per kl, resulting in a 20.5 per cent drop in month-on-month sales.
In the first two weeks of March, dealers as well as the public topped up their tanks in anticipation of a price hike for elections in states like Uttar Pradesh.
While the daily price corrections resumed on March 22, the increase was calibrated. The rise in prices controlled consumption.
Petrol sales by state-owned fuel retailers, which control nearly 90 per cent of the market, stood at 1.12 million tonnes during April 1-15, up by about 12.1 per cent over the same period last year and over the same period of 2019 19.6 percent higher. , Preliminary industry data showed.
However, consumption was down 9.7 per cent in March 2022 from sales of 1.24 million tonnes in the same period.
Sales of diesel, the country’s most widely used fuel, grew 7.4 per cent year-on-year to nearly three million tonnes.
This was 4.8 per cent higher than the sales in March 2019, but 15.6 per cent lower than the consumption of 3.53 million tonnes during March 1-15.
Petrol and diesel sales were up 18 per cent and 23.7 per cent, respectively, in the first half of March, when most of the hoarding was done on expectations of a price hike.
Diesel sales during March were the highest in any month in the last two years and were more than the total quantity of diesel sold in April 2020 when the country was under complete lockdown.
Industry sources said panic buying was triggered by individual vehicle owners in the first half of March, with petrol pump dealers topping up not only their storage tanks but also any mobile browser or tanker truck.
Dealers were expected to make quick money by buying fuel at a lower rate and selling it at revised higher prices. As prices rose, consumption fell.
Petrol and diesel prices hit the freeze button during the election campaign in five states, including Uttar Pradesh, in early November 2021.
The record freeze of 137 days ended on March 22.
Jet fuel (ATF) sales rose 9.8 per cent to 231,400 tonnes in April 1-15, but were 25.9 per cent lower than pre-Covid levels in 2019. However, sales were down 1.7 per cent from 235,400 tonnes in the first half. of March 2022.
ATF sales are expected to pick up with the full opening of air travel last week.
The last week of March 2020 included a complete lockdown, halting flights, halting rail and road movement and closing businesses in India to contain the spread of the coronavirus. The March 2020 period was close to normal as the COVID restrictions were just starting.
The government gave free LPG cylinders during 2020 to the poor to help them fight the repercussions of the stringent lockdown. This helped the state oil companies register month-on-month growth, while other transport fuels saw a sharp drop in demand.
But LPG consumption fell 0.7 per cent year-on-year to 1.02 million tonnes in the first half of April. This was 4 per cent lower than April 2020 and 20.5 per cent lower than 1.3 million tonnes demand in March 1-15, 2022.
The sale of LPG declined after the price hike of Rs 50 per cylinder on March 22. In the first half of March, LPG sales had grown by 17 per cent.
But compared to the first fortnight of April 2019, sales were up 16.5 per cent, the data showed.
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$('meta[name=description]').attr("content",$(this).children().find('.left-block').attr('data-summary'));
$('meta[name=keywords]').attr("content",$(this).children().find('.left-block').attr('data-keyword'));
$('meta[name=news_keywords]').attr("content",$(this).children().find('.left-block').attr('data-keyword'));
pSUPERFLY.virtualPage(prevLoc,$(this).children().find('.left-block').attr('data-title'));
//console.log("Summary: " + $(this).children().find('.left-block').attr('data-summary'));
//console.log("Keyword: " + $(this).children().find('.left-block').attr('data-keyword'));
//history.pushState('' ,'', prevLoc);
loadshare(prevLoc);
}
return false; // stops the iteration after the first one on screen
}
});
if(lastHeight + last.height() < $(document).scrollTop() + $(window).height()){
//console.log("**get");
url = $(next_selector).attr('href');
x=$(next_selector).attr('id');
//console.log("x:" + x);
//handle.autopager('load');
/*setTimeout(function(){
//twttr.widgets.load();
//loadDisqus(jQuery(this), disqus_identifier, disqus_url);
}, 6000);*/
}
//lastoff = last.offset();
//console.log("**" + lastoff + "**");
});
//$( ".content-area" ).click(function(event) {
// console.log(event.target.nodeName);
//});
/*$( ".comment-button" ).live("click", disqusToggle);
function disqusToggle() {
var id = $(this).attr("id");
$("#disqus_thread1" + id).toggle();
};*/
//$(".main-rhs2454417").theiaStickySidebar();
var prev_content_height = $(content_selector).height();
//$(function() {
var layout = $(content_selector);
var st = 0;
///});
}
}
});
/*}
};*/
})(jQuery);