Reuters reports that in November 2022, India’s fuel demand reached an eight-month high. According to the report, fuel demand in India increased as a result of festivals and an increase in industrial activity in the world’s third-largest oil consumer country. It also claimed that fuel consumption in India increased by 2.4% in November, reaching 18.84 million tonnes last month, up 10.2% from the same month a year ago.
Every year, the holiday season helps to boost fuel demand because people consider this time of year to be auspicious for purchasing new vehicles. Furthermore, the holidays during this season increase travel activity across the country, resulting in higher demand for gasoline and diesel. According to the report, analysts believe that the high fuel consumption will continue in the coming months.
According to the report, diesel sales increased 19.1% from 2021 to 7.76 million tonnes in November 2022, accounting for roughly four-fifths of India’s refined fuel demand, while petrol sales increased 8.1% to 2.86 million tonnes. The increase in diesel sales indicates increased transportation activity across the country, as this fuel powers the majority of the transportation sector. In November of this year, there was an increase in private and public transportation fuel demand, as well as a recovery from the monsoon season.
Interestingly, vehicle sales in India are expected to increase in November 2022. A series of new car launches, lucrative offers, the holiday season, and positive buyer sentiment have all contributed to increased vehicle sales in the country, which has also contributed to increased fuel demand. In November 2022, the Indian auto industry saw a 31.3 percent increase in sales to 322,070 units, up from 245,214 units sold in November 2021.