India’s diesel consumption grew 10 per cent month-on-month (M-o-M) in November 2022 to hit 7.7 million tonnes (mt), the second-highest thus far in FY23 after June (7.8 mt) in addition to within the final 12-month interval.
Petrol or motor spirit (MS) consumption remained virtually flat at 2.9 mt final month. To date within the present monetary yr, petrol consumption has been within the vary of two.8-3 mt, knowledge from the Petroleum Planning and Evaluation Cell (PPAC) present.
Submit the seasonally weak July-September quarter, India’s auto gas demand inches up throughout the pageant season interval of October-December, additional aided by growing industrial and farm exercise.
In line with Crisil, petrol and diesel gross sales for the final 5 fiscal years have continued to extend all through October-December, earlier than moderating in January and February and peaking in March.
After hitting the bottom consumption thus far in FY23 throughout July and August at 6.3 mt, demand for diesel, thought-about the mainstay of India’s farm and transport sector, has been rising backed by a pick-up within the Rabi sowing season.
A senior official with an oil advertising firm (OMC) stated diesel consumption positive aspects momentum additional as sowing and irrigation exercise throughout the Rabi season picks up in November and December. Use of irrigation pumps and tractors fuels this demand.
“Final November, there have been rains in key consuming States which impacted diesel gross sales. However this time farm exercise is constantly rising. In addition to, financial exercise has additionally picked up with work on street and different infrastructure tasks gaining momentum,” he defined.
For example, India’s nationwide freeway (NH) development exercise, which slowed all the way down to round 19.5 km per day in H1 FY23, has picked up within the second half aided by softening of uncooked materials costs and better variety of tenders floated by the federal government.
In October, the general freeway development stood at 4,060 km towards 3,559 km in September and a pair of,912 km in August. Awarding rose to five,007 km in October from 4,092 km and a pair of,706 km in September and August, respectively.
S&P International Commodity Insights tasks India’s oil consumption in 2022 calendar yr to edge previous 2019 ranges.
“In close to time period, we count on India’s oil demand to rise sequentially by about 210,000 barrels per day within the fourth quarter (October-December) after the monsoon season, boosted by festive and vacation seasons. On a year-on-year foundation, the demand in This autumn is anticipated to develop about 100,000 barrels per day, down from 370,000 barrels over the primary three quarters of this yr, which was boosted by a low base within the earlier yr,” it added.
