Diesel consumption in India rises as economic recovery continues

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Diesel consumption in India rises as economic recovery continues

Increasing prices does not work in the face of increased demand


Monday – 12 Rabi’ al-Awwal 1443 AH – 18 October 2021 AD Issue No. [
15665]

New Delhi: «Middle East»

Diesel consumption in India is increasing with the start of the annual festivals, boosting sales to approach pre-corona levels in the first half of October, in a sign of the recovery of the economy.
Sales of India’s three largest fuel retailers totaled 2.41 million tons of diesel from Oct. 1 to Oct. 15, down just 0.9 percent from the same period in 2019, according to preliminary data cited by Bloomberg, citing officials with direct knowledge of the matter. command.
Officials, who asked not to be identified because the information is not public, said sales were up 14.5 percent from the first half of last month.
The country’s month-long festival season – which usually takes place during the months of October and November – is an active time for diesel-guzzling trucks to hit roads to deliver everything from clothes to refrigerators across the country.
The reopening of schools and crop-harvesting activities will increase industrial fuel consumption.
Diesel accounts for nearly 40 percent of India’s total demand for petroleum products, and the recovery will boost refining operations and crude oil imports from the world’s third largest oil consumer. The International Monetary Fund expects India’s gross domestic product to grow by 9.5 percent in the fiscal year that ends next March, after a 7.3 percent contraction the previous year.
The prices of both gasoline and diesel rose to the highest level in their history in the local market in India, last Friday. The price of fuel increased by about 0.35 rupees per liter, which raised the price of gasoline in the capital, New Delhi, to 105.14 rupees ($ 1.4), the highest level in its history.
Meanwhile, the Indian government is seeking to reassure citizens that there will be enough coal to meet the country’s needs amid fears of blackouts, while several states have expressed concerns about blackouts.
Several states expressed concerns after blackouts were reported over the weekend. However, the government played down those concerns, insisting that there be enough coal to meet the needs of the power plants.
India’s Union Coal Minister Pralhad Joshi said the state-run Coal India, which provides 80 percent of the country’s energy, had enough coal for 22 days and the government was providing more supplies.
He continued, “We provided 1.95 million tons of coal, which is a record. He said that after October 21, we will try to save up to two million tons, and we want to assure the whole country that coal will be provided according to the requirements.
Government data on coal supply at thermal power plants showed that 115 of 135 federally monitored power plants were facing “critical or very critical” coal shortages, NDTV reported, and 70 plants had only four days’ supply of coal. .
Coal accounts for nearly 70 percent of India’s electricity generation, with about 75 percent of it mined locally. Joshi said the shortage could be due to prolonged rainfall, which hinders the transportation of coal from mines to power generation units.
The government allowed energy producers to speed up coal imports to meet rising energy demand, in a move that could raise prices further.
It also gives a warning to states that energy producers will reduce their electricity supply if their facilities are found to be selling energy in exchanges to take advantage of higher prices.


India

India’s economy







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