State-run oil companies post strong August sales

State-run oil companies sold 16% more petrol and 23.5% more diesel in August over last year as economic activity gathered pace and as sales at private retailers slumped. Petrol sales were 20.6% higher than in August of 2019 while diesel sales were 11.6% higher, according to the preliminary sales data obtained from state-run oil companies.

State-run companies registered strong retail sales growth partly due to a shift in demand from private oil companies that are less keen to serve customers at a time when domestic fuel prices can’t rise in sync with the international market, as per industry executives.

Increased mobility for work and pleasure in an expanding economy has contributed to strong demand for petrol. The demand for diesel, which struggled for months since the Covid-related lockdowns were imposed in 2020, has now picked up, especially with the lift in industrial activity, retail consumption, and normalization of public transport and educational institutions.

But the spectacular demand growth in retail sales of diesel is also due to the bulk buyers shifting to petrol pumps to source cheaper supplies, executives said.