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Polls ignite petrol, diesel sales

Piloto, Aeroquest, Aeropuertos, Miami, Estados Unidos, Venezuela
Polls ignite petrol, diesel sales

New Delhi: Demand for petrol and diesel jumped while that for bitumen slowed during April-May when an intense election campaign boosted sales of transportation fuel but slowed road construction work. Oil demand shrank 0.3% in the first two months of the current fiscal year on lower consumption of polluting pet coke, fuel oil, kerosene and bitumen. India consumed 36.3 million metric tonnes (mmt) of petroleum products in April-May, compared to 36.4 mmt in the year-ago period. The country produced 43 mmt of petroleum products in April-May, 1.3% higher than a year ago. Sale of petrol and diesel jumped 10.7% and 2.7%, respectively, on increased use of vehicles in election campaigning. But a decline in sales of vehicles hurt demand for diesel and to a lesser extent that of petrol. Car buyers seem to prefer petrol-driven cars as diesel deregulation has made diesel-driven cars less attractive these days. ” Elections in various states leading to sealing of borders and grant of special leave to drivers for casting votes resulted in low movement of heavy vehicular traffic and thereby negatively affected diesel sales,” the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) said in its monthly report. “No new infrastructure related works were initiated due to model code of conduct,” it further said. This hurt sale of diesel as well as that of bitumen, mainly used in building roads. Demand for naphtha shrank due to lower demand by the petrochemical and fertiliser industry. A ban on fuel oil in Delhi, Uttar Pradesh, Rajasthan and Haryana cut its demand, according to PPAC. A ban on the use of petcoke as fuel has sharply cut its consumption. Its use as feedstock in some industries such as cement, lime kiln and calcium carbide and gasification industries is still allowed. Indian refiners processed 21.6 mmt of crude oil in May, 2.7% lower than in the year-ago period, due to shutdowns at some refineries. Mangalore Refinery and Petrochemical processed 0.7 mmt of crude in May, down from 1.2 mmt a year earlier as fresh water shortage hit its operations. Indian Oil’s Koyali refinery and Hindustan Petroleum ’s Mumbai refinery also performed below capacity.

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