Positive outlook for the auto sector in light of new models and increased activity in the commercial vehicle segment have been driving petrol sales especially since the curtailment of CNG in the transport sector; similarly, there has been a continuous growth in the demand of generators that has also increased petrol consumption.

For September 2016, the petrol sales by the oil marketing companies have increased by over 15 percent year-on-year to 576,000 tons; whereas the imports of the same increased by 25 percent, making up for almost 73 percent of the total petrol sales.

For the first three months of FY17 (July-September), the petrol sales grew by almost 21 percent to 1.67 million tons, and imports grew in tandem, making up for around 76 percent of total petrol volumes sold by the OMC sector.

Other major retail fuels like furnace oil and diesel have also seen double digit growth in 3MFY17 as well as the latest month, September 2016. For 3MFY17, furnace oil volumes increased by over 30 percent, signifying the increased consumption in the power sector despite the addition of RLNG to the system. Share of imports in total furnace oil volumes sold by the OMCs is also generally over 75 percent; for the 3MFY17, these imports climbed by 26 percent – in line with increased consumption.

High speed diesel, which is largely used by the tractors in the transport sector, grew by 10 percent in 3MFY17, while imports of the same increased by 26 percent in the same period.

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