Delhi, India: On the back of continued demand from the agriculture sector, an increase in travel during the winter holidays, and a sharp increase in car sales, India's December fuel sales continued to accelerate.
According to market data for the month, diesel consumption, a key indicator of economic activity, increased by 13% from December 2021 and by more than 11% from the same month in the year before the pandemic. However, sequentially, sales were 0 5 percent less than November
Oil sales increased by 8. 6% over a similar time of 2021 and 23% over December 2019. The sequential growth was also evident, with sales exceeding consumption by three. 7%. ATF, or jet fuel, sales increased sharply, rising 18% over the previous year but falling 12% from December 2019. However, December sales were positive at 5. 8% more than in November, indicating a steady increase in demand as a result of an increase in the number of flyers.
LPG consumption, primarily for home cooking, increased by 7. 7% lower than a year ago and close to 16% lower than December 2019, when winter chill engulfed most of north India and temperatures dropped in the rest.
With the beginning of cropping season in November, the momentum for diesel demand growth began to build. Demand for the most frequently used fuel was driven by the utilization of threshers and other farm machinery in addition to grain transportation to wholesale markets and further consumption centers. As diesel-powered pumping sets were utilized for the sowing of rabi crops, the demand was sustained by the absence of winter rains.
People's preference for personal cars when traveling to tourist destinations or their hometown, as well as a 15% increase in passenger vehicle sales in December, according to brokerages, drove gasoline sales.
Holiday travel also contributed to an increase in demand for diesel, and an increase in the number of flyers boosted ATF sales. However, due to a more muted recovery in overseas flights, jet fuel sales are still below the level they were before the pandemic.