Fuel demand recovery still fragile as diesel sales fall 5% in November

New Delhi: Diesel sales fell 5% year-on-year in the first half of November after rising above pre-Covid level last month, showing the demand recovery was still fragile.

Petrol sales rose 0.2% from last year. Both diesel and petrol sales, however, rose compared to October first half. Diesel rose 7.6% and petrol 4.6%, as per the provisional sales data from state-run oil companies, which control nearly 90% of the country’s fuel retail market.

In October, diesel sales had grown 7.4% and petrol 4.3% year-on-year, signalling full recovery in energy demand. But a drop again this month, which coincided with the festival season, indicated recovery challenges. Diesel accounts for nearly 40% of the country's oil demand.

Consumption of jet fuel was unchanged in November first half from last month. It was, however, 53.5% lower year-on-year.