India's fuel demand rebounds sharply in February

India's demand for fuel witnesses sharpest rebound in February as petrol and diesel consumption rose by double digits after a winter lull in the previous month.

Petrol sales soared almost 18 per cent to 1.22 million tonnes in the first half of February compared to 1.04 million tonnes of consumption in the same period of last year.

Sales were 18.3 per cent higher than in COVID-marred first half of February 2021 and 15.7 per cent more than in the same period of 2020.

Diesel, topped fuel consumption in the country, posted a near 25 per cent rise in sales during February 1-15 to 3.33 million tonnes, as compared to the same period last year.

Industry sources said diesel demand surged as trucks returned to roads and there was a pick up in the agriculture sector. Use of the fuel in irrigation pumps and trucking helped build the momentum generated.

India's recovery has continued to gain momentum in recent months but has been accompanied by elevated inflation. This slowed the momentum a bit. The country's oil demand had been rising steadily since the easing of COVID-19 restrictions.

Cooking gas LPG sales were up 4.1 per cent year-on-year at 1.39 million tonnes in February 1-15. LPG consumption was 14.7 per cent higher than in February 2021 and 20.9 per cent more than in February 2020.

Month-on-month, the demand was up nearly 12 per cent when compared to 1.24 million tonnes of LPG consumption during January 1-15, the data showed.