The Hindu Business Line : Petrol, diesel sales up 10 pc in May

PETROLEUM products sales soared this May with a growth of 10 per cent compared to a fall of 3.5 per cent last May, a relief for oil marketing companies plagued by squeezed retail margins because of high crude prices.

Retail sales of diesel, petrol and even CNG posted an overall increase in growth rates to 11.3 per cent, against a a 7 per cent fall last year. Oil companies say electioneering and the anticipated increase in fuel prices could have been the drivers of this growth.

Diesel, the supposed indicator of industrial growth, grew 13.6 per cent in May 2004 compared with a -9.1 per cent fall in May 2003.

Petrol sales also jumped 10 per cent (-5.2 per cent). LPG, another product that saw its prices go up by Rs 20 in June, grew by 22.6 per cent (7.2 per cent). CNG, another household fuel, saw sales growth rates slipping to 59.7 per cent (137.3 per cent). Kerosene sales, which have been falling since the Government order banning imports by private traders, last year-end, continued the downward spiral. Sales growth was -2.1 per cent (-2.8 per cent).

Aviation turbine fuel, naphtha and furnace oil were among the industrial fuels to record high growth rates.

While naphtha sales, including exports, jumped 12.1 per cent (-18.3 per cent) and furnace oil sales increased by 8.1 per cent (-5.1 per cent), sales of low sulphur heavy stock fell 13.6 per cent (13 per cent). ATF sales increased 11.7 per cent compared with an increase of 0.7 per cent last year.

Sales of bitumen, primarily used road construction, recorded a 3.5 per cent growth, much lower than the 19.8 per cent reported last May. While sales of lubes and greases reported a -1.4 per cent growth, an improvement when compared to the -22.6 per cent last May.