Fuel consumption in India rose to 19.41 million tonnes, the very best since March 2019 as per the oil ministry’s Petroleum Planning and Analysis Cell knowledge.
India’s gas demand rose to a three-year excessive in March, with petrol gross sales hitting an all-time peak, because the market gathered provides foreseeing worth spikes, regardless of which the outlook for the nation’s post-pandemic financial restoration stays promising.
Consumption of gas, a proxy for oil demand, rose 4.2% from the identical month final yr to 19.41 million tonnes, its highest since March 2019, in response to the nation’s oil ministry’s Petroleum Planning and Analysis Cell knowledge as on April 9.
“March oil demand was strongly supported by stockpiling activity/hoarding in anticipation of a rise in petrol and diesel prices in the later part of the month,” UBS analyst Giovanni Staunovo mentioned.
Preliminary knowledge this month confirmed Indian state refiners’ gasoil and gasoline gross sales in March surged on elevated demand from sellers and shoppers forward of an anticipated sharp rise in retail costs after elections in key states.
“So this (higher prices) likely will weigh on demand prospects in the near term, but with the economy still expanding, oil demand is likely to continue recovering over the coming months,” Staunovo mentioned.
Sales of gasoline, or petrol, have been 6.2% increased from a yr earlier at 2.91 million tonnes, their highest ever as per knowledge going again to 1998.
To mitigate the rising price of oil imports, India has turned to Russian barrels which can be accessible at a deep low cost citing “national interests”.
Indian refiners have purchased at the least 16 million barrels of cheaper Russian oil for May loading on a delivered foundation, just like purchases for the entire of 2021, in response to Reuters calculations as of final week.
While imports of Russian oil have stored India’s economic system, rising from its pandemic slowdown, on observe, “India is also needing to tread carefully politically,” mentioned Jeffrey Halley, chief market analyst at OANDA.
DOMESTIC SALES (in million tonnes):
NOTE: Total figures might not tally as a result of not all gadgets are included within the desk, and numbers are rounded. The numbers for earlier months might have been revised.
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Christopher Cushing, Sherry Jacob-Phillips and Uttaresh.)
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