India transport fuel demand recovers in September

India's transport fuel demand rose in September from August, with gasoline sales increasing from a year earlier, despite a surge in Covid-19 cases in the country and sporadic disruptions to economic activity as a result of localised lockdowns.

Diesel consumption rose by 22pc last month from August but fell by 7.3pc from a year earlier. September typically sees a recovery in diesel sales, in line with easing rainfall and the onset of the festive period. Gasoline use rose by 2pc from a year earlier and by 10.5pc on the month as more people used their own vehicles, state-controlled refiners said. Jet fuel consumption fell by 53pc from a year earlier but rose by 27pc from August as there were more domestic flights.

Sales of diesel, India's most-consumed oil product, averaged 1.2mn b/d in September compared with 955,000 b/d in August and 1.3mn b/d a year earlier as the country entered its sixth month of lockdowns. Gasoline use totalled 620,000 b/d in September, up from 608,000 b/d a year earlier and 542,000 b/d in August.

Jet fuel sales averaged 76,000 b/d last month compared with 163,000 b/d a year earlier and 60,000 b/d in August. Data from state-controlled refiners cover around 90pc of domestic sales. LPG sales in September rose to 2.28mn t from 2.2mn t in August and 2.16mn t a year earlier.

State-controlled refiners have adjusted throughputs in line with demand and are now operating at average run rates of around 75pc, down from over 90pc in early July. But they plan to increase run rates this month as they see demand strengthening. India's Covid-19 case count has exceeded 6.2m, behind only the US.

By S Dinakar