Industrial diesel sales fall 5 months running
The impact of the ongoing industrial slowdown is evident from a continuous decline in the sale of diesel to industries, Anupama Airy reports.business Updated: May 26, 2009 23:05 IST
The impact of the ongoing industrial slowdown is evident from a continuous decline in the sale of diesel to industries.
While the figures are yet to be officially released, data compiled by the Petroleum Ministry’s technical and analytical wing — Petroleum Planning and Analysis Cell (PPAC) — shows that direct sales of diesel to industry, which account for 22 per cent of total diesel sales, recorded a dip compared to the same months a year ago for the fifth month in a row.
In April, direct diesel sales to the industry dipped by 1.3 per cent. “The industrial slowdown adversely impacts diesel consumption far more than petrol. As industrial slowdown has reduced power demand from industry, use of captive gensets using HSD (high speed diesel) has also declined,” a PPAC report to the ministry said.
Overall diesel sales growth stood at 4.8 per cent in April and was quoted as “moderate despite the general elections” by the PPAC.
Another confirmation of the slowdown in industrial growth is the trend shown by aviation companies in their offtake of jet fuel. Sales of jet fuel or the aviation turbine fuel (ATF) also continued a downslide in April at minus 3.2 per cent.
“ATF has been consistently recording negative growth every month since September 2008,” said the PPAC report.
While private oil companies, which are late entrants in to aviation business and have a low base, recorded a huge negative growth of 35.7, state-owned oil companies also recorded a negative growth of 2.4 per cent in ATF sales.
Naphtha, an industrial fuel, recorded negative growth for the second successive month.
In April, naphtha sales dipped 2 per cent year-on year. But this was mainly because naphtha no longer enjoys a price advantage over liquefied natural gas (LNG), which is now more attractive for power generation. Petrol sales, in contrast to industrial fuels, rose 7.8 per cent year-on-year in April, aided by lower retail prices since February.
“This only corroborates the assumption that substantial price reduction in petrol has a positive impact on demand,” PPAC said.