India’s gasoil and gasoline 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 gasoline and gasoil 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 gasoil and gasoline 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.

Gasoil 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.

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

Sales of gasoil, 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.

Gasoline sales in February hit about 2.3 million tonnes, up 23.8% from January and about 3.3% higher from a year ago, as people continued to prefer using personal vehicles over public transport for safety reasons, 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.
Source: Reuters (Reporting by Nidhi Verma; Editing by Rashmi Aich)