Poll rallies, easing COVID curbs boost India's February petrol, diesel sales

Figures signal recovery in industrial activity

India's diesel and petrol sales surged in February from the previous month, preliminary fuel sales data showed, signaling a recovery in industrial activity as States lift the COVID 19-led curbs.

Local sales of auto fuel were also high, as retail prices of petrol and diesel have not been raised since November due to assembly elections in key states despite a rise in global oil and refined fuel prices.

Also, India's petrol and diesel consumption typically rises during elections as political parties extensively use vehicles for canvassing. A seven-phase voting that started from Feb. 10 for assembly polls in five states will end on March 7. Diesel sales by the country's state fuel retailers amounted to 5.75 million tonnes last month, data compiled by state-owned refiners showed, up 21.4% from January.

Diesel sales were, however, down about 1% from a year earlier and about 5% lower from February 2020.

Sales of dieself, which account for about two-fifths of India's overall refined fuel consumption, are directly linked to industrial activity in Asia's third-largest economy.

Petrol sales in February hit about 2.3 million tonnes, up 23.8% from January and about 3.3% higher from a year earlier, as people continued to prefer using personal vehicles over public transport for safety reasons, the data showed.

State retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd. own about 90% of the country's retail fuel outlets.