According to Reuters article published on December 1, 2022, Indian state refiners' daily diesel sales rose 21% in November from the previous month, preliminary sales data showed, indicating a recovery in the country's industrial and construction activity.
Diesel, which accounts for about four-fifth of India's refined fuel demand, is mainly used by trucks to transport goods. It is also used by heavy industrial equipment and generator sets for sectors such as quarrying and mining.
State fuel retailers daily sold 244,300 tonnes of diesel in November, a growth of 17.4% from the same month last year, the data showed.
"This year monsoon withdrew in October while last year there were rains in November, so last year's base was low. Also, mining and industrial activity picks up post-monsoon rains hence diesel demand rose during the month," an Asian trader said.
Diesel demand from Indian agriculture sector increases in October and November due to harvesting of summer sown crops and planting of winter crops.
India's factory activity expanded at its fastest pace in three months in November to 55.7 compared with 55.3 in October, showed the Manufacturing Purchasing Managers' Index (INPMI=ECI), compiled by S&P Global.
A source at one of the state refiners said state-fuel retailers' diesel sales rose as customers turned to their outlets after a full shutdown of a private refinery for maintenance.
Nayara Energy's 400,000 barrels per day (bpd) Vadinar refinery was fully shut during the month for maintenance.
India's daily gasoline sales in November rose by 4.7% from the previous month to 88,700 tonnes, the data showed.
State retailers Indian Oil Corp (IOC.NS), Hindustan Petroleum Corp (HPCL.NS) and Bharat Petroleum Corp Ltd (BPCL.NS) own about 90% of the country's retail fuel outlets.
