India's fuel consumption struck a nine-month peak in December 2021India's fuel intake in December 2021 scaled a nine-month peak, federal government data revealed on Tuesday, although a fresh coronavirus wave may slow the steady recovery of need worldwide's 3rd greatest oil consumer.Fuel consumption, a proxy for oil demand, amounted to 18.43 million tonnes, up 7.6 percent from November and 0.4 percent from a year before, information from the oil ministry's Petroleum Preparation and Analysis Cell showed.But intake was still about 3 per cent lower than December 2019, quickly before the coronavirus pandemic broke out.The Indian oil market has actually gotten better post COVID-19 and we expect it to continue, said Phil Flynn, senior analyst at Price Futures in Chicago.There are signals of strong output - refinery runs increased to a two-year high in November - and while demand is up fairly modestly from December 2020, January 2022 could be a 'hit' month, Mr Flynn added.
Consumption of diesel, accounting for about 40 per cent of India's refined fuel sales, grew 12.2 percent month-on-month to 7.31 million tonnes, their highest because December 2019, and 1.6 per cent from the exact same duration last year.However, the current surge in Omicron cases will no doubt weigh on activity and put a dent in the demand figures early in the new year, stated Craig Erlam, senior market expert at OANDA.
But the more comprehensive trend stays positive and ought to recover once this next wave passes.
Sales of gas, or fuel, increased 6.4 per cent from November to 2.82 million tonnes, a record-high based on information returning to 1998, and were 13.9 percent higher than December 2019, and about 4.1 per cent year-on-year.
The healing remains in full speed, with the exception of some headwinds, and high oil prices may slow, but not hinder it, stated Refinitiv expert Ehsan Ul Haq.
Sales of cooking gas, or melted petroleum gas (LPG), decreased nearly 1.9 per cent to 2.48 million tonnes year-on-year, while naphtha sales fell 2.1 per cent to 1.19 million tonnes.Bitumen sales fell 18.8 percent, while fuel oil usage rose 2.5 percent in December.