Diesel Demand Reaches Six-Month High Amid Festive Season Surge

India experienced a significant rise in diesel consumption, reaching an impressive high in November. The increase, invigorated by the festive season and GST rate cuts, showcases a promising boost in economic activity, with diesel sales marking a 4.7% growth to 8.55 million tonnes in November.

In a remarkable post-monsoon recovery, India's diesel consumption surged to a six-month high in November, primarily due to the festive season and a cut in GST rates, according to preliminary industry data. The Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) revealed a 4.7% rise in diesel sales, hitting 8.55 million tonnes for the month.

The uptick reverses a three-month decline in diesel demand, catalyzing economic activity as the backbone of goods transport. Post-September's receding rains, and with more active trucking for festive deliveries, diesel's upward trajectory signalled improved economic momentum.

Overall, the growth in fuel consumption, including petrol and LPG, highlights a strengthening market. Notably, household adoption of the subsidized LPG scheme contributed significantly, enhancing both domestic utility and fuel demand stability in varying sectors.

(With inputs from agencies.)