India’s Petrol, Diesel Demand Boomerangs to Pre-Covid Levels, ATF Yet to Catch Up

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In an indication of a fast-recovering economy post pandemic, India’s fuel demand, except ATF, has returned to pre-Covid levels.

Fuel sales had fallen by a record 45.8 per cent in April last year when a nationwide lockdown was imposed to check the spread of coronavirus infections. Demand started to recover with the easing of lockdown restrictions, with petrol returning to normal growth first and now diesel too is back at pre-Covid levels.

“Expect for ATF, we have touched normal demand,” Indian Oil Corporation (IOC) Chairman Shrikant Madhav Vaidya said in a media briefing. “We are back on track.”

While petrol sales had reached pre-Covid levels a few months back, diesel was up 7.4 per cent year-on-year in the first half of March.

With airlines not operating all flights, ATF sales remain below normal.

This is the first annual rise in petrol sales since October. ATF sales, which fell by more than 80 per cent in the aftermath of the lockdown, was down 36.5 per cent in the first half of March.

India’s economy returned to positive growth territory in the fourth quarter of 2020 as its real GDP expanded by 0.4 per cent year-on-year after two-quarters of contraction.

Crude oil suppliers group OPEC’s monthly oil report last week forecast a 13.6 per cent jump in India’s oil demand in 2021 to 4.99 million barrels per day.

India’s oil demand had fallen 10.54 per cent in 2020 to 4.40 million bpd from 4.91 million bpd in 2019.

The recent positive developments in industrial activities will result in industrial fuels being the backbone for oil demand growth in 2021, with a healthy rebound for transportation fuels providing further support, it said adding the aviation sector will remain under pressure throughout 2021 and will also be a major source of uncertainty.

In 2020, India’s GDP contracted by 7 per cent, but it is forecast to grow by 9 per cent in 2021.

“Following the 0.4 per cent growth registered in 4Q20, India’s was one of the few major economies to post growth in the quarter as lockdowns eased, and this rebound is expected to continue as consumption manufacturing activity rise,” the OPEC report said

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Diesel sales top pre-Covid levels by 7%, but LPG slips – Times of India

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NEW DELHI: India’s diesel consumption increased 7% from a year ago in the first fortnight of March but demand for LPG, or household cooking gas supplied in cylinders, dropped more than 3% to coincide with a steep rise in refill prices and removal of subsidy.
Data from state-run fuel retailers, who dominate 90% of the market, show petrol sales rising over 5% from a year ago, boosted by car sales snapping the pandemic blues in February and people going back to using their personal vehicles on resurgence of Covid-19 cases in several states.
This is the first yearly growth in diesel sales since October 2020, reinforcing the view that the economy is on its way to recovery as its consumption is one of the key indicators of economic activity.
In February, diesel demand had slid 8% and petrol consumption declined 2% in February from a year ago. In December, sales had for the first time since October recorded a monthly decline at 6%.
Jet fuel sales were down more than 36% from a year ago in March fortnight. However, this can be seen as a sign of recovery since February when consumption was more than 40% lower than the pre-pandemic level.
The economy stepped out of recession in the December quarter, posting a growth of 0.4% as economic activities in terms of movement of people, raw materials and finished products picked up.
The fall in LPG consumption is surprising since this is the only fuel to remain in the positive territory in terms of growth in sales. While an early onset of summer in parts of the country could be one reason, the impact of a Rs 125-per cylinder price in February and simultaneous loss of subsidy cannot be ruled out.

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Fuel price war paralyses Parliament | India News – Times of India

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NEW DELHI: Both Houses of Parliament failed to function on Tuesday with leader of Congress in Lok Sabha Adhir Ranjan Chowdhury alleging “digital discrimination” against the opposition in the lower House, saying protests by them were being “blacked out”.
Speaker Om Birla retorted sharply and asked the Congress leader whether he was desirous of showing the public scenes of unruly protests and persistent disruption by opposition MPs. Chowdhury, however, persisted with his allegations, demanding that the “blackout” be stopped and said Parliament belonged not only to the government, but equally to opposition parties.
Protests, which have included waving of placards and slogan shouting, have not been shown on TV by order of successive Speakers, including those when UPA was in office.
Chowdhury said, “There is digital discrimination. Whatever the government says and does comes on television. Everyone is a stakeholder in the House. Whatever we do is being blacked out. The blackout should stop. The camera should focus on everyone.”

Incidentally, Congress MPs were in the well at that point, demanding a rollback of fuel and LPG prices, as well as a discussion on the subject. Parliamentary affairs minister Pralhad Joshi, endorsing the Speaker’s comments, said the opposition wanted the country to see Parliament in disarray.
Vociferous protests by opposition parties against rise in fuel prices led to repeated adjournments of Rajya Sabha as well, which consequently failed to transact any substantial business.
Congress, BSP, DMK, Shiv Sena and Left parties demanded suspension of regular business for a discussion on the record high prices of petrol and diesel as soon as proceedings began in the upper House at 11 am.
With Chairman M Venkaiah Naidu having already disallowed the notice moved by leader of opposition Mallikarjun Kharge, deputy chairman Harivansh said the ruling could not be “reopened” as per rules.
But the slogan-shouting opposition members persisted with their demand, with some of them even trooping into the well, leading to the first adjournment till noon. The House was then adjourned till 2 pm amid continuing uproar.
After lunch, law minister Ravi Shankar Prasad stressed on the need to take up the Arbitration and Conciliation (Amendment) Bill 2021, which has already been passed by Lok Sabha and seeks to replace an ordinance.
Senior Congress member Anand Sharma, however, said as per tradition, no government bill should be taken up when the opposition was demanding a discussion on an important issue.
“The opposition has a right to take up the issue,” he said. With the opposition showing no signs of relenting, the deputy chairman adjourned the House for the day.

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Despite Skyrocketing Prices, India’s Fuel Demand May Hit Record High to Make up For Covid Slump

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India’s demand for gasoline diesel and other fuels is likely to reach a record 215.24 million tons in the next one year, according to Ministry of Petroleum and Natural Gas’s arm, Petroleum Planning and Analysis Cell.

The demand is likely to shoot up by 10 % from the current year, which has been hit hard by the Covid-19 pandemic.

India’s fuel consumption last year plunged by as much as 70 per cent, led by the world’s biggest lockdown.

India is the third highest oil importer and strong demand for transport and industrial fuels is expected to drive next year’s rebound. Consumption of diesel, an economic barometer and the country’s most-used fuel, will grow by more than 13 per cent, as will demand for gasoline. Overall fuel demand in the current financial year is expected to fall 8.5 per cent.

Also read: Haryana Khap Urges Dairy Farmers to Hike Milk Rates in Protest Against Farm Laws, Rising Fuel Prices

A trend for more commuters to use personal cars, instead of buses, trains and other modes of public transport, is expected to drive India’s demand for gasoline.

Demand for aviation fuel, which suffered the biggest blow, is estimated to grow more than 74 per cent during 2021-22, but will remain a little lower than the pre-pandemic year, the PPAC’s projection showed.

India’s GDP in the third quarter of FY21 rose marginally at 0.4 percent, in line with expectations, reaffirming that the economy had managed to exit the Coronavirus pandemic-led slump by 2020-end, according to official data released by the National Statistical Office (NSO) on Friday.

Petrol and diesel prices continue have been soaring due to continuous rise in fuel rates. Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan last month blamed the hike on reduced production by the international market.

“There are two main reasons behind the fuel price rise. The international market has reduced fuel production and manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer,” Pradhan was quoted as saying by news agency ANI.

“We have continuously been urging the Organisation of the Petroleum Exporting Countries (OPEC) and OPEC plus countries that it should not happen. We hope there will be a change,” he said.



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