NEW DELHI: Consumption of diesel, a bellwether for economic activities, shot up by 27.6% and petrol by 11.7% in November from a year ago, marking the fastest increase since June because of higher demand from the farm sector sector, robust auto sales and expanding factory activity.
Sequential growth in November diesel sales also stood in double digits, with market data showing the three state-run fuel retailers, which serve 90% of the market, selling 17% more than October. The month-on-month increase in petrol sales, however, was more tepid at 1.7%.
Jet fuel sales posted a growth of 21.5% in November from a year ago and a healthy 4% over October as festive travel and state elections added wind to airlines’ sails.
Consumption of LPG, or cooking gas supplied to households in refills, increased by over 7% both in terms of year-on-year and month-on-month growth due to the onset of winter and continuation of festive spirit.
Widespread use of farm equipment such as harvesters, threshers and tractors for harvesting as well as pump sets for irrigating fresh crop being sowed are attributed for rise in diesel demand from the agriculture sector. Expanding factory activity further boosted demand for diesel, while robust auto sales contributes towards higher consumption of petrol.
Diesel sales have been posting monthly growth since September as pent-up demand boosted economic and commercial activities.
