Coal News We love to talk!

NOV 16 2016

Fuel sales increase between 30 per cent and 40 per cent since demonetization

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 16th NOV 2016

State-run oil companies sold 30-40% more fuel than the average in the days following the demonetisation of Rs 500 and Rs 1,000 notes that set off panic among people, sending them in hordes to fuel stations, one of the few places allowed to accept old notes.

Hindustan Petroleum Corporation Ltd sold about 30% more fuel daily in the past four-five days than what it did on an average day in October, chairman MK Surana said.

“When people are unsure of supplies they want to hoard it. Second, people bought petrol to dispose of old notes they couldn’t have used anywhere else. Third, people feared they may not be left with enough usable cash in future, so why not fill their fuel tanks now,” Surana said.

State-run oil companies sold about 30% more petrol and 40% more diesel than normal between November 9 and 13, a senior executive at a state oil firm said on condition of anonymity.

The demand is now tapering off and petrol pump dealers are bracing for slow sales in the next few days. “There is no desperation anymore. The panic has ended,” said Nitin Goyal, who owns a petrol pump in Delhi and is a treasurer at All India Petroleum Dealers Association.

Tuesday saw lower sales, Goyal said. “Everyone has filled to capacity. It will take a few days for them to use that before returning to a pump,” he said.

There have been fears about the demonetisation-induced cash crunch slowing down consumption in the economy, but HPCL’s Surana said he expected no significant impact on fuel consumption on this account.

“Those who have a car will continue to drive. We don’t expect our sector to have any significant impact. Some minor impact could be there but no large impact is expected,” Surana said.

India’s fuel demand surged 6.7% in October from a year ago after declining in September, aided by a sharp rise in petrol and diesel consumption. Fuel consumption rose 7.8% in the seven months through October this year. Petrol consumption rose 13.8% to 2.1 million tonnes in October. The demand for diesel, which accounts for 40% of all fuels consumed in the country, climbed 5.1% to 6.7 million tonnes.


Delhi Oil Diesel Petrol Petroleum Hindustan Petroleum Corporation Limited India

Related News

  • Diesel deregulation: Government keeps a cushion of 56 per litre  Read more
  • Discoms unveil plans to cope with summer demand  Read more
  • CNG gets dearer, petrol cheaper in Delhi  Read more
  • India in talks to buy coking coal mines in South Africa  Read more
  • OVL, IOC, OIL, BPRL ink $4.2-bn pacts with Rosneft  Read more
  • Power generation from hydro plants dips in the first quarter  Read more
  • Essar Oil to sell 49 per cent stake to Russia's Rosneft for $3.2 billion  Read more
  • Oil crossing $65 mark is a worrying sign for Modi government  Read more
  • State-owned OMCs shy away from hedging over fear of losses, govt scrutiny  Read more
  • India and US launch $ 95 million clean energy projects under OPIC financing  Read more