India’s September gas consumption crawled increased month-on-month as financial exercise continued to ramp up, authorities information confirmed on Wednesday, however hovering international oil costs might stall a restoration on this planet’s third-biggest oil importer and shopper.
Gas consumption, a proxy for oil demand, totalled 15.92 million tonnes final month, up barely from August and 5.2% increased than in September 2020, information on the Petroleum Planning and Evaluation Cell (PPAC) web site confirmed.
However total, consumption was nonetheless 1.7% beneath September 2019.
Monsoon rains and delivery constraints had prompted a dip in consumption in August.
Petrol gross sales slipped 3.5% from August, however climbed 6% year-on-year and 9.5% from September 2019.
Elevated private mobility drove petrol demand, “which has clearly moved above pre-COVID ranges”, mentioned Hetal Gandhi, director at CRISIL Analysis.
Consumption of diesel, which typical accounts for about 40% of refined gas gross sales, additionally eased 1.7% month-on-month to five.51 million tonnes, and was 5.6% decrease in contrast with September 2019.
However diesel gross sales rose barely from the identical interval final 12 months.
“Whereas total diesel demand nonetheless stays beneath pre-COVID ranges, a restoration is in step with a rush forward of the festive season,” Gandhi added.
Nonetheless, hovering international crude costs might sluggish the rebound, with India signalling late final month that elevated international oil costs might additionally velocity up the transition to various power sources. [O/R]
“I see a gradual restoration in demand from right here, however excessive oil costs might pose a major problem for Indian shoppers,” Refinitiv analyst Ehsan Ul Haq mentioned.
Versus a 12 months in the past, gross sales of liquefied petroleum fuel (LPG) elevated 4.5% to 2.36 million tonnes, whereas naphtha gross sales fell 0.5% to 1.11 million tonnes.
Gross sales of bitumen, used for making roads, had been up 7.2%, whereas gas oil use rose 21%.
(Reporting by Bharat Govind Gautam, Ashitha Shivaprasad and Kavya Guduru in Bengaluru; Enhancing by Andrew Heavens and Jan Harvey)
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