Petrol, diesel, jet fuel sales surge in Nov as economy picks up

Petrol, diesel, jet fuel sales surge in Nov as economy picks upIANS

India’s petrol, diesel and jet fuel sales shot up in November this year compared to the same month last year, reflecting the higher level of economic activity in the country, data compiled by the public sector oil companies showed.

Petrol sales of Indian Oil, Bharat Petroleum and Hindustan Petroleum jumped by 8.3 per cent to 3.1 million tonnes in November compared to 2.86 million tonnes of consumption in the same month last year due to the increase in demand for the fuel during the festive month. The government-owned oil giants account for over 90 per cent of sales of fuels.

Similarly, the consumption of diesel went up by 5.9 per cent to 7.2 million tonnes during November due to the increased movement of goods on highways and rising demand from the farm sector as the rabi crop sowing season was in full swing.

Reserve Bank of India (RBI) has also maintained its GDP growth forecast for the current fiscal year at 7.2 per centIANS

Jet fuel (ATF) sales increased by 3.6 per cent year-on-year to 6,50,900 tonnes during November due to the increase in air travel in the country. This was also 2.3 per cent higher month-on-month when compared with 6,36,100 tonnes of fuel sold in October.

LPG sales were also up 7.3 per cent year-on-year at 2.76 million tonnes in November as more households have switched to cooking gas under various schemes for the welfare of the poor introduced by the government.

The increase in economic activity is also reflected in the surge in overall GST collections in November which recorded an 8.5 per cent jump to Rs 1.8 lakh crore. This is the fourth-highest monthly collection ever.

The Finance Ministry’s monthly economic review also mentions a rebound in many high-frequency indicators of economic activity, including rural and urban demand, and supply-side variables like the Purchasing Managers’ Index and E-way bill generation.

On the employment front, the formal workforce is expanding, with notable increases in manufacturing jobs and a strong inflow of youth into organised sectors, it added.

The Reserve Bank of India (RBI)has also maintained its GDP growth forecast for the current fiscal year at 7.2 per cent.

“India’s growth story remains intact as its fundamental drivers — consumption and investment demand — are gaining momentum. Prospects of private consumption, the mainstay of aggregate demand, look bright on the back of improved agricultural outlook and rural demand. Sustained buoyancy in services would also support urban demand,” RBI Governor Shaktikanta Das said while presenting the latest monetary policy review.

(With inputs from IANS)