After petrol, diesel demand has returned to pre-COVID-19 levels as sales rose 6.6 per cent in October from a year ago, preliminary industry data showed.
This is the first annual increase in sales of diesel, the most consumed fuel in the country, since the nation imposed lockdown in late March to curb the spread of the pandemic.
While demand for petrol has been more resilient than diesel due to an increased preference for using personal vehicles instead of public transport to follow distancing norms, October sales number showed better than anticipated recovery.
Diesel demand returned to normal as the festive season peaked.
Diesel sales rose to 6.17 million tonnes in October from 5.79 million tonnes a year ago, the data showed.
Demand for the fuel jumped in second half of the month. Sales in first half of October were at 2.65 million tonnes.
Sales were 27.5 per cent higher than September 2020 demand of 4.84 million tonnes.
Petrol sales, which had returned to pre-COVID levels last month, grew over 4 per cent to 2.39 million tonnes in October, up from 2.29 million tonnes in the same month a year ago and 2.2 million tonnes in September this year.
India witnessed unprecedented demand destruction after a nationwide lockdown was imposed on March 25. Oil demand fell by as much as 49 per cent in April.
With easing of restrictions and reopening of the economy, fuel demand recovered sharply in June from April, before slowing due to reimposition of restrictions in certain cities because of coronavirus cases and flooding in some regions.
It started to climb back again in September. Even in September, diesel sales had shown a month-on-month increase.
On Friday, Shrikant Madhav Vaidya, chairman of Indian Oil Corp, the nation's biggest oil firm, had stated that demand recovery was faster than expected.
However, sales of aviation turbine fuel (ATF) continue to be way below normal as airlines are yet to resume full services.
ATF sales halved to 3,28,000 tonnes in October from a year ago, but were 12 per cent higher than 2,90,000 tonnes sold in September.
'We see (oil) demand picking up this quarter (October-December) and it will return to normal in couple of months,' Vaidya had said.
Petrol sales had climbed rapidly because personal mobility was being preferred, leading to more private cars on the road. However, in the case of diesel, consumption sectors like school buses and public transport were at a very subdued level.
Industry sources said while the Indian economy has started to pick up with lockdown restrictions being lifted from June, local lockdowns by states have hampered quick recovery in demand.
Cooking gas LPG sales stood at 2.44 million tonnes during October, up 3.8 per cent year-on-year and 7 per cent month-on-month.
Car sales rose 26.4 per cent in September from a year ago, while two-wheeler sales rose 11.6 per cent.
(PTI)