India's fuel demand rose in March as a pick-up in agriculture activity helped reverse a slowdown that was witnessed in the first half of the month, preliminary industry data showed on Sunday.
Fuel sales soared to the highest levels in February on the back of robust demand from the agriculture sector as well as transport picking up after the winter lull. But a seasonal slowdown kicked in during the first half of March.
However, there was a pick-up in the second half, which helped sales rise even month-on-month despite the high base of February. Petrol sales rose 5.1% to 2.65 million tonnes in March when compared with the same period of last year. Sales were up 3.4% month-on-month, the data showed.
Diesel, the most consumed fuel in the country, saw demand rise by 2.1% to 6.81 million tonnes during March when compared with 6.67 million tonnes sales in the same period a year back. Month-on-month the demand was up 4.5%.
In the first half, petrol sales had fallen 1.4% and diesel 10.2% year-on-year. Consumption of petrol in March was 16.2% more than Covid-marred March 2021 and almost 43% more than in the same period of 2020.
Diesel consumption was up 13.5% over March 2021 and 41.8% higher than in the same month of 2020. With the continued opening of the aviation sector, India's overall passenger traffic at airports inched closer to pre-Covid levels.
Reflecting the trend, jet fuel demand jumped 25.7% to 614,000 tonnes during March when compared to the same period last year. It was 41.9% higher than March 2021 and 34.8% more than March 2020. Month-on-month sales were 4.54% higher.
India's recovery has continued to gain momentum in recent months but has been accompanied by elevated inflation. The country's oil demand had been rising steadily since the easing of Covid-19 restrictions.
Cooking gas LPG sales fell 3% year-on-year to 2.37 million tonnes in March. LPG consumption was 9% higher than in March 2021 and 5.8% more than in March 2020.
Month-on-month, the demand dropped 6.54% when compared to 2.54 million tonnes of LPG consumption during February, the data showed.
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