Petrol and diesel sales in India rebound in May - Energy

India saw a rebound in petrol and diesel sales during the month of May, despite higher fuel prices caused by record levels in global prices.

During the first half of this month, gasoline sales rose by 14%, compared to the same period last month, while demand for diesel jumped by 1.8%.

This comes at a time when India is facing a severe heat wave that has exacerbated the country’s electricity crisis, damaged crops, as well as threatening the health of millions of citizens.

Many people have resorted to using their air-conditioned cars instead of buses and trains without air conditioning; To escape the high temperatures.

Increased consumption of gasoline and diesel

The recovery in demand with the return of economic activity and the start of the harvest season led to an increase in consumption during the current month, according to the newspaper “The Economic Times”.

Petrol and diesel sales in India
Petrol and diesel pumps inside an Indian gas station – Photo courtesy of NDTV

According to primary industries data, sales of gasoline at state-owned gas stations reached 1.28 million tons during the period from May 1-15, an increase of 59.7% over the same period last year, and 16.3% over the same period in 2019.

Consumption increased by 13.9% over sales in the first half of April 2022, which amounted to 1.12 million tons.

As for diesel – the most used fuel in the country – its sales jumped by 37.8% year on year to 3.05 million tons in the first half of this month.

However, it was 1.5% lower than sales in April 2019 and 1.8% higher during the first half of the same month this year.

On the other hand, consumption declined during last April, due to the increase in gasoline and diesel prices by about 10 Indian rupees (0.13 USD) / liter, after a freeze that lasted more than 4 months.

(Indian rupees = 1.30 US dollars)

cooking gas consumption

After the end of the parliamentary elections that were conducted in 5 Indian states, the prices of liquefied petroleum gas – also known as cooking gas – continued to rise.

Cooking gas prices in India vary from state to state due to local taxes, as retailers review LPG cylinder prices at the beginning of each month.

After a price hike of 50 rupees per cylinder last March, an additional 50 rupees increased this month, bringing the price of a cylinder to 1,000 rupees, which resulted in a decrease in the consumption of cooking gas.

Sales of liquefied petroleum gas during the period from 1-15 May reached 1.05 million tons, a decrease of 5.4% during the same period last year, and by 12% from the same period in May 2020, but it was 9.8% higher than in 2019.

On a monthly basis, demand for liquefied petroleum gas increased by 2.8%, compared to sales of 1.02 million tons in the first half of April 2022.

Aviation fuel sales

Meanwhile, sales of jet fuel increased by 83.5% during the first half of this month, reaching 251,400 tons, and increased by 7.7% over sales in the first half of last month.

Petrol and diesel sales in India
Petrol and diesel prices in India – Photo courtesy of IndiaTV

However, these numbers represent a decrease of 18.9% from pre-coronavirus 2019 levels.

It is expected that jet fuel sales will continue to rise with the reopening of all air ports.

Meanwhile, jet fuel prices rose by 5%, reaching a record high of INR 123,39/litre, in the capital, New Delhi.

Thus, jet fuel prices have jumped by 61.7% since last January, as the authorities review jet fuel prices at the beginning of each month and the beginning of the second half of the month, while reviewing gasoline and diesel prices daily, according to the corresponding prices in the global market. .

High fuel prices in India

India is 85% dependent on imports to meet its oil needs.

Fuel prices in India have risen remarkably after global energy prices rose, fears of supply shortages increased following the Russian invasion of Ukraine, and demand rebounded after the Corona pandemic.

Although oil prices have fallen from a 14-year high of $140 a barrel, prices are still above $100.

The situation in the country worsened, after the depreciation of the rupee against the US dollar, which increased the cost of imports.

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