Indian state refiners have reported an 8.4% increase in sales of gasoil during the first half of April compared to the previous month. According to preliminary sales data, this rise in sales has been attributed to an increase in demand from the agriculture sector, as well as a recovery in industrial activity. Gasoil accounts for around two-fifths of refined fuel consumption in India, and is closely linked to industrial activity.
Increase in Gasoil Sales
India’s state-run oil refineries have reported a significant increase in sales of gasoil during the first half of April. According to preliminary sales data, gasoil sales rose by 8.4% to 3.45 million tonnes during this period, compared to the previous month. This increase has been attributed to a rise in demand from the agriculture sector, as well as a recovery in industrial activity. Gasoil is widely used in the transportation of goods and materials, making it a key indicator of industrial activity.
Impact on India’s Fuel Market
India’s economy is greatly dependent on gasoil, which constitutes around 40% of the country’s refined fuel consumption. As a result, the recent rise in gasoil sales is a promising indication of industrial activity recovery in India. Nevertheless, the sales of other refined fuels have experienced a downfall during the same duration. For instance, gasoline sales encountered a dip of 6.6% amounting to 1.14 million tonnes in the first half of April. In like manner, the sales of LPG witnessed a plummet of over 6% to 1.1 million tonnes in the same duration. Furthermore, the sales of jet fuel experienced a drop of nearly 4%, summing up to 284,600 tonnes.
State-Run Companies Dominate India’s Fuel Market
State-run companies, including Indian Oil Corp, Hindustan Petroleum Corp, and Bharat Petroleum, own approximately 90% of India’s retail fuel outlets. These companies play a critical role in ensuring the availability of fuel across the country. The rise in gasoil sales is likely to benefit these companies, as it is one of the key fuels sold at their retail outlets. However, the decline in sales of other refined fuels may impact their revenue.
Preliminary Sales Data for India’s Refined Fuels
The following table outlines India’s preliminary fuel sales data for the first half of April, with volumes in thousand tonnes:
| Refined fuel | April 1-15 | March 1-15 | % change | % change vs year on year 2021 |
| Gasoline | 1144.5 | 1225.7 | -6.6 | 14.6 |
| Gasoil | 3456 | 3188.6 | 8.4 | 24.3 |
| Jet fuel | 284.6 | 295.8 | -3.79 | 35 |
| LPG | 1107.4 | 1182.8 | -6.37 | 7 |
The data shows a significant increase in gasoil sales, while sales of other refined fuels have declined. The decline in sales of gasoline, LPG, and jet fuel may be attributed to the ongoing COVID-19 pandemic and the restrictions on travel and mobility. However, the increase in gasoil sales is a positive sign for the Indian economy, indicating a recovery in industrial activity.
