India's domestic diesel demand in November rose from the previous month but failed to surpass pre-Covid-19 pandemic levels, as it did in October after a short-lived boost from the festival season. Gasoline consumption continued to be robust.
Diesel consumption of 1.62mn b/d last month fell by 14pc compared with November 2019 and was down by 8pc from a year earlier, provisional oil ministry data showed. This was in line with data from state-controlled refiners that account for around 90pc of the country's fuel sales.
Consumption of diesel, the most consumed oil product in India, rose by 2pc from the previous month. Demand in October had exceeded 2019 levels by 2pc and was up by 16pc on the previous month, as the festival season produced increased demand for goods and boosted trucking and heavy motor vehicle activity. A durable recovery in demand is yet to be seen, market participants said.
But gasoline demand continued to surpass pre-pandemic levels because of increasing preference for personal vehicles over public transports after the easing of lockdowns. Consumption of 745,000 b/d in November rose by 4pc from the same period in 2019, even though it fell by 1pc from a month and a year earlier. Demand growth is likely to be pressured if mobility gets restricted because of the impact of the new Omicron Covid-19 variant in the coming months.
Jet fuel demand of 132,000 b/d was up by 9pc on the previous month and by 34pc against a year earlier, in line with market expectations, as domestic air traffic rose after airlines were allowed to operate at full capacity. But consumption continued to lag pre-pandemic levels, down by 29pc compared with November 2019, as strict restrictions and health concerns continue to weigh on travellers' sentiment.
Bitumen consumption of 563,000t in November was down by 16pc on the previous month, by 22pc from a year earlier and by 4pc compared with the same month in 2019, although expectations were for a growth in demand.
Demand for naphtha, which is used in the petrochemical and fertilizer sectors, fell by 8pc from the previous month to 336,000 b/d, which was down by 19pc on a year earlier and by 9pc compared with November 2019.
India's overall demand for oil products — including LPG, naphtha, fuel oil and petroleum coke — of about 17.13mn t fell by 4pc from the previous month. It was down by 11pc against a year earlier and by 7pc from pre-pandemic levels.

