Thursday, March 2, 2023

Gasoline sales in February are still soaring

Fuel sales continue to gallop apace in February

 Delhi, India: In February, the early start of summer, harvesting, which increased demand from the agricultural sector and increased mobility as a result of expanding economic activities, continued to drive up consumption of gasoline, diesel, and jet fuel.

When compared to the same month a year ago, the consumption of gasoline increased by 13%, that of diesel by 12%, and that of jet fuel by almost 41%. The usual modest growth in LPG consumption, primarily by households for cooking, was maintained at 2.4%.

When the economy first started to recover from the pandemic in the same month in 2021, consumption grew significantly faster. Sales of gasoline, diesel, and jet fuel increased by 15.7%, 12.1%, and 41.3 percent, respectively, when compared to February 2021.

However, compared to February 2020, when the pandemic had not yet impacted demand, the growth in diesel sales was only 7%. This indicates a persistent pandemic overhang because diesel is a crucial indicator of economic activity.

In contrast, gasoline sales show a 20% increase over February 2020, indicating that consumers' preference for personal vehicles persists in the post-pandemic unlock period, as evidenced by robust automobile sales.

Similarly, sales of jet fuel have gradually recovered, but they are still 10% below the level in February 2020, indicating that this level may be a source of resistance. The travel season in the summer is expected to fully recover the industry.

According to the data, sequentially, gasoline sales increased by 13.5 percent, diesel sales by 9.2 percent, and jet fuel sales by just 3.3%.

Due to the increased use of diesel pumps for irrigating late-standing crops like mustard, demand from the farm sector has increased despite the early start of summer and the absence of winter rains. The demand was further boosted by harvesting in states with early harvesting.

EleganceWorks Voices

Catch Daily Highlights In Your Email

* indicates required

Post Top Ad