New Delhi: India’s fuel demand grew in March as a pick-up in agricultural activity helped reverse the slowdown seen in the first half of the month, preliminary industry data showed on Sunday. Fuel sales hit an all-time high in February as strong demand from the agriculture sector as well as transportation picked up following a winter shortage.
But in the first fortnight of March the seasonal slowdown started. However, the second half picked up pace, which helped propel month-on-month sales growth despite February’s high base. ,Also Read: Latest Bank Fixed Deposit Rates 2023: ICICI Vs HDFC Vs PNB FD Rate Comparison,
Petrol sales rose 5.1 percent to 2.65 million tonnes in March compared to the same period last year. The data showed a 3.4 per cent increase in sales month-on-month. ,Also Read: IDBI Launches New Amrit Mahotsav FD Scheme – Check Interest Rate, Maturity Period & Other Details,
Demand for diesel, the country’s most consumed fuel, rose 2.1 per cent to 6.81 million tonnes during March as against 6.67 million tonnes sold in the same period a year ago.
Month-on-month demand grew by 4.5 per cent. Petrol sales declined by 1.4 per cent and diesel sales by 10.2 per cent on a year-on-year basis in the first half. Petrol consumption in March was 16.2 per cent higher than the post-COVID-March 2021 and almost 43 per cent higher than the same period in 2020.
Diesel consumption was higher by 13.5 per cent compared to March 2021 and 41.8 per cent compared to the same month of 2020. With the continued opening up of the aviation sector, India’s overall passenger traffic at airports approached pre-COVID levels.
Reflecting the trend, demand for jet fuel (ATF) increased by 25.7 per cent to 614,000 tonnes during March compared to the same period last year. It was 41.9 percent more than March 2021 and 34.8 percent more than March 2020. Month-on-month sales were up by 4.54 per cent.
India’s recovery has accelerated in recent months, but it is accompanied by high inflation. The country’s oil demand had been on a steady rise since the easing of COVID-19 restrictions.
Cooking gas LPG sales fell 3 per cent year-on-year to 2.37 million tonnes in March. LPG consumption was 9 per cent higher as compared to March 2021 and 5.8 per cent higher as compared to March 2020.