India's fuel demand rises eight-month peak in November
India's fuel demand rose to an eight-month high in November 2022, reports Reuters. The report claims that fuel demand in India increased as festivals and a pick up in industrial activity boosted sales in the world's third-largest oil consumer country. It also claimed that fuel consumption in India had grown by 2.4 per cent in November, while it went up to 18.84 million tonnes last month, up by 10.2 per cent from the same month a year ago.
Every year, the festive season usually helps in increasing the fuel demand, as people consider this time of the year auspicious for buying new vehicles. Also, the holidays during this season boost travel activities across the country, eventually resulting in higher demand for petrol and diesel. The report has cited analysts claiming that the high fuel consumption will continue over the coming months.
The report further revealed that sales of diesel, which accounts for about four-fifth of India's refined fuel demand, went up 19.1 per cent from 2021 to 7.76 million tonnes, while petrol sales increased 8.1 per cent to 2.86 million tonnes in November 2022. The rise in diesel sales indicates a higher transportation activity across the country, as the lion's share of the transport sector runs on this fuel. The rise in private and public transport sector's fuel demand, along with recovery after the monsoon season, was notable in November this year.
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Interestingly, vehicle sales across India witnessed positive growth in November 2022. A series of new car launches, lucrative offers, the festive season, and positive buyer sentiment has helped in boosting vehicle sales in the country, which has further helped in increasing fuel demand. In November 2022, the Indian auto industry registered a 31.3 per cent sales growth to 322,070 units as compared to 245,214 units sold in November 2021.