India's Crude Throughput And Fuel Sales Fall In February Due To Higher Prices

February is a month that, despite the least number of working days, sees high consumption of petroleum products due to pleasant weather and festivities due to wedding season.

After hitting a year high in January, India's crude oil processing fell in February 2020 compared to the year-ago period due to higher crude oil prices and weaker demand for petroleum products.

According to government data, crude oil processed in refineries during February 2021 was 18.6 MMT, 11.8% lower than February 2020, and a four-month low.

On a cumulative basis, total crude oil processed was 200.8 MMT which was lower by 13.9 % during April – February 2021 compared to April – February 2020.

The lower processing of crude oil led to a 10.9% degrowth in petroleum products in February.  From April- February, the petroleum products saw degrowth of 12.2% over the previous year's corresponding period.

February is a month that, despite the least number of working days, sees high consumption of petroleum products due to pleasant weather and festivities due to wedding season.

However, India's fuel consumption also fell to a five-month low in February as higher retail prices dented demand.

The key petroleum products products which registered de-growth were Diesel (HSD) -8.5%, Petrol (MS) -3.0%, Aviation Turbine Fuel (ATF) -37.1%, Bitumen -11.1% and Furnace Oil & Low Sulphur Heavy Stock (FO/LSHS) -10.2%. Kerosene (SKO) recorded degrowth of -25.8% during the current month compared to February 2020.

"February 2021 had 28 days as compared to 29 days in February 2020, effecting the consumption to that extent," said the government data.

February 2021 saw COVID vaccination roll out and increased economic activity accompanied by increased mobility. Rising GST collections indicated positive sentiment and increased domestic production.

The consumption of petroleum products in February 2021 with a volume of 17.2 MMT recovered to 95.1% of the volume of 18.1 MMT in February 2020.

Petroleum products consumption during the period April to February 2021 recovered 88.7% of the consumption during the same period the previous year.

LPG consumption registered a growth of 7.7% during the month of February 2021 compared to February 2020, mainly due to increased domestic consumption with PMUY refills.

Other products which registered a growth in the month of February 2021 were Naphtha 0.3%, Lubes & Greases 0.8%, Light Diesel Oil (LDO) 46.5%, Pet coke 0.5%, and products categorized under "Others" category 5.5%, said the government data.