Diesel, energy consumption shrinks in November as festive demand fizzles out

NEW DELHI: India’s diesel and energy consumption, thought-about bellwether for financial exercise, contracted sharply in November as festive season demand fizzled out, indicating the financial restoration stays fragile as renewed curbs in a number of states hit by a second wave of Covid infections restricted motion of individuals and items.
Monthly gross sales information of public sector gas retailers, who dominate 90% of the market, confirmed diesel consumption falling 7% from a 12 months in the past in November.
On month-to-month foundation, nevertheless, diesel grew 8% from October when consumption had shot previous the pre-pandemic degree for the primary time in eight months. Power demand dropped 4.7% to 98.37 BU (billion items) in the identical month from 93.94 BU within the year-ago interval.
The drop in diesel and energy demand follows information final week displaying the financial system shrinking 7.5% within the third quarter after slumping almost 24% within the earlier three months. Reduced gas consumption can be telling on refinery operations, which confirmed a decline.
But the festivities, regardless that muted, pushed up petrol demand by 5% from a 12 months in the past as folks most well-liked driving to their residence cities, go to family or a vacation vacation spot. Petrol consumption has been rising by about 4% for the previous couple of months however turned flat through the first fortnight.
Diesel gross sales had topped pre-Covid degree in October by clocking a 6% year-on-year progress. Power consumption too had recorded a double-digit surge in October after turning constructive in September.
Consumption of LPG, or family cooking gas, rising greater than 4% in November on extra residence cooking — as a substitute of consuming out to celebrate- as households largely remained restricted to their houses. Consumption was down 2% from a 12 months in the past within the first fortnight
Jet gas gross sales have been down greater than 48% from a 12 months in the past, recovering loads of floor since September however nonetheless remained 48% in need of the pre-Covid degree because the variety of flights nonetheless stay curtailed. This reveals gross sales recovered floor as they have been 52.8% decrease from a 12 months in the past within the first fortnight.

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