Indian state fuel retailers’ diesel sale in October surged from the previous month, preliminary sales data shows, indicate a pick up in industrial activity during the peak festive season.
Fuel demand in India- a proxy for oil demand in Asia’s third-largest economy- typically rises during the month long festival season as diesel-guzzling trucks hit the roads to deliver goods.
State-refiners’ average daily gasoil sales last month rose 6.2% from September and was 12% higher than a year ago, the data showed. Gasoil accounts for about two-fifth of India’s over all fuel demand.
India’s factory activity expanded at a stronger pace in October as demand and output remained solid, encouraging firms to hire workers at the fastest pace in nearly three years, according to the Manufacturing Purchasing Managers’ IndexINPMI=ECI, compiled by S&P Global.
Also, a higher need for personal mobility during the month-long festival season drove up October average gasoline sales by 1.5% from September, the data showed.
State retailers Indian Oil Corp IOC.NS, Hindustan Petroleum Corp HPCL.NS and Bharat Petroleum Corp Ltd BPCL.NS own about 90% of the country’s retail fuel outlets.
