In May, India’s average petrol sales fell by almost a fifth compared to the previous month, due to strong demand to stay at home in several parts of the country’s scarce demand. Monthly gasoline sales have been the lowest in the country since May 2020.
Oil sales, more than half of India’s oil consumption, fell by 20% compared to April, 30% weaker than in the same period in 2019.
As demand in the domestic market declined, Indian refineries were forced to ship more fuel to other countries, with exports peaking at 13 months in May, according to data from Vortexa Ltd. However, due to the weakness in the region’s product cracks, exports are likely to be successful and will decline in June, Serena Huang, the company’s chief market analyst, said, according to Bloomberg.
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As India’s second-wave crisis began to ease, some states have begun to relax Covid-linked travel belts, giving them hope for fuel sales. Last year, when the Pandemic cuts began, gasoline sales were the fastest to recover from the impact of the blockade, as more and more people preferred to buy private cars and motorbikes rather than take public transportation. Thus, fuel demand is expected to increase in June, as the second wave of coronavirus is expected to weaken.
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Another factor affecting fuel demand in May is the rise in retail prices for gasoline and diesel. Both fuel engines went up 16 times in May alone, gasoline was also violated ₹100 brands in 100 cities including Mumbai and Bhopal. Gasoline prices have risen in the last 16 months with fuel increases ₹For every 3.83 liters, the price of diesel has risen ₹4.42 per liter.
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