Petrol, Diesel Sales Jump In December Riding On Agricultural Consumption: Report

Petrol sales in December increased by 8.6 per cent to 2.76 million tonnes, compared to 2.54 million tonnes in the same month last year

Sales of petrol and diesel soared in December on the back of increased demand in the agriculture sector, according to preliminary industry data. This surge in demand is significant as higher agricultural demand is building on the momentum generated by the festive season, reported PTI. 

Petrol sales in December increased by 8.6 per cent to 2.76 million tonnes, compared to 2.54 million tonnes in the same month last year. Sales are 13.3 per cent higher than in December 2020, when Covid-19 affected the market. It has also increased 23.2 per cent more than pre-pandemic December 2019, the report said. 

Sales are 3.7 per cent higher than compared to October, when the festive season helped bring momentum to the market, it added.

The most used fuel in the country, Diesel sales increased by 13 per cent to 7.3 million tonnes in December as compared to the same month last year. Consumption increased by 14.8 per cent over December 2020 and by 11.3 per cent over the pre-COVID December 2019, the report said, adding that sales of petrol and diesel were the highest since June. 

Industry sources told PTI that diesel demand has been surging to pick up sales in the agriculture sector. The use of the fuel in irrigation pumps and trucking has helped build the momentum generated from the festive season demand push in October. Rabi crop-sowing led to a pick-up in economic activity and a rise in demand.

Due to the monsoon and decreased demand, auto fuel sales had decreased in July and August, the report said. Adding that India's overall airport passenger traffic is approaching pre-COVID-19 levels. Jet fuel demand increased 18 per cent to 6,06,000 tonnes in December compared to the same month last year. It was 51.6 per cent higher than December 2020 but 12.1 per cent lower than in December 2019, prior to COVID, the report said. 

Sources told PTI, while domestic air travel is back to pre-COVID levels, international traffic is lagging because of continued restrictions in some countries.

Sales of cooking gas LPG increased 7.7 per cent year-on-year to 2.72 million tonnes in December. According to the report, demand increased 6.47 per cent compared to November's 2.55 million tonnes of LPG sales. 

The report added that the recovery in India has accelerated recently, although this has been accompanied by high inflation. Since the COVID-19 limitations were loosened, the nation's oil demand has been continuously increasing.