Agriculture Demand Boosts India’s Deisel Sales to Record Highs in April

In India, diesel sales hiked sharply in the first half of April as agricultural activity picked up and trucking rose to meet the industrial demand, preliminary industry data showed on Monday.

The most consumed and demanded fuel in the country i.e., diesel accounts for about two-fifths of the demand, soared over 15 per cent to 3.45 million tonnes in the first half of April when compared to a year ago.

Month-on-month sales increased to 8.4 per cent when compared with 3.19 million tonnes of diesel consumed in the first half of March which had observed a seasonal slowdown.

Petrol sales increased about 2 per cent to 1.14 million tonnes from April 1 to April 15 when compared with the same period of last year. However, sales fell 6.6 per cent month-on-month, the data displayed.

Petrol sales fell 1.4 per cent and diesel 10.2 per cent year-on-year in the first half of March.

The consumption of petrol in April’s first half was 14.6 per cent more than COVID ruined April 1-15, 2021, and almost 128 per cent more than in the same period of 2020.

Over April 1-15, 2021, diesel consumption was up 24.3 per cent and 127 per cent higher than in the same month of 2020.

India's overall passenger traffic at airports inched closer to pre-COVID levels with the constant opening of the aviation sector.

Reflecting the trend, jet fuel (ATF) demand hiked 14 per cent to 2,84,600 tonnes during the first half of April when compared to the same period last year. It was 35 per cent higher than April 1-15, 2021, and 467.6 per cent more than the same period in 2020. However, month-on-month sales fell 3.8 per cent.

Industry officials said that India is relishing steady growth with support from the services sector as well as the industrial side of the economy. The nation's oil demand was supported by strong industrial activity.

In terms of products, diesel was the major driver of oil demand as there was a pick up in the agriculture sector, as well as requirements for power generation and industry. Use of the fuel in irrigation pumps and trucking supported diesel.

Sales of cooking gas LPG increased 5.7% year over year to 1.1 million tonnes between April 1 and 15. LPG usage was 7% higher than from April 1 through 15, 2021, and 9.2% higher than from April 2020's first half. According to the report, the demand decreased 6.37 percent month over month when compared to the 1.18 million tonnes of LPG consumed between March 1 and 15.