Diesel gross sales report uptick for first time since Oct 2020

Petrol and diesel gross sales by state-owned oil advertising and marketing corporations (OMCs) rose 27.4 per cent and 28.6 per cent, respectively, final month resulting from low base in March 2020 which was hit by the beginning of Covid-19-related journey restrictions.
Sales of the 2 fuels had crashed in March 2020 as the federal government imposed journey restrictions to regulate the unfold of Covid-19.
Petrol gross sales recovered to pre-Covid ranges final September and have continued to develop nearly every month amid an rising choice for private mobility.
However, diesel gross sales — an indicator of commercial exercise — have grown for the primary time since October, when gross sales was excessive as a result of festive season.
Petrol gross sales final month was at 2,475 thousand metric tonnes (TMT), up from 1,943 TMT in March 2020.
The 6,406-TMT of diesel gross sales by Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd was, nonetheless, nonetheless down 4.7 per cent in comparison with March 2019, as per knowledge reviewed by The Indian Express.
Experts stated the resurgence of Covid-19 and journey restrictions to fight the unfold in components of the nation may additionally hit restoration of diesel consumption going ahead.

“Businesses may try to localise their supply chains at a state level and prefer suppliers who are nearby over suppliers who are in far-flung areas,” stated Vivekanand Subbaraman, an analyst at Ambit Capital.
Meanwhile, consumption of aviation turbine gas fell to 437 TMT final month from 457 TMT in March 2020 and that of LPG to 2,264 TMT from 2,292 TMT.