India's May Diesel Sales Slide: Report

Daily gasoil sales of state refiners declined in May
Daily gasoil sales of state refiners declined in May

Daily gasoil sales of Indian state refiners declined in May from April as lower consumer spending curtailed truck movement in the country, preliminary fuel sales data showed.

Sales of gasoil, which accounts for about two-fifths of India's overall refined fuel consumption, is directly linked to industrial activity in Asia's third-largest economy.

Average daily gasoil sales of state refiners was 220,200 tonnes, a decline of about 1.5 per cent from April, while gasoline sales rose 4.7 per cent to 90,100 tonnes, the data showed.

Wholesale price inflation of 15 per cent limited consumer spending across the country in May while cargo offering by industries declined as well, said Indian Foundation of Transport Research and Training in a statement.

Also, the rupee's more than 4 per cent depreciation against the US dollar this year has made imported items costlier.

India's Manufacturing Purchasing Managers' Index, compiled by S&P Global, came in at 54.6 in May, slightly lower than April's 54.7.

Fuel sales in May was, however, higher than last year, when the country was hit by a second deadly wave of the coronavirus.

State-run Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp - which together dominate India's retail fuel market - own about 90 per cent of the country's retail fuel outlets.

India's gasoline sales have been rising since the country eased pandemic lockdown, as people continued to prefer using personal vehicles over public transport for safety reasons and to avoid heat waves.