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Our Bureau

New Delhi, Aug. 28 Driven by continued growth in diesel demand, July saw an increase in domestic oil product sales and higher crude oil imports.

According to an official data, the oil product sales in July saw a 7.8 per cent increase to 10.7 million tonne (mt) against the corresponding period last year. Domestic diesel sales were up 10.3 per cent at 4.08 mt from a year earlier.

While crude oil imports rose 8.7 per cent during the month under review, petroleum product imports fell by 21.6 per cent. In July, 11.84 mt of crude oil was imported (10.89 mt in the same month a year ago). The petroleum product imports saw a decline to 1.52 mt, despite a significant rise in consumption.

The reason for dip in petroleum products import was due to public sector oil companies also sourcing fuel from private refiner Essar to meet the requirements. While petrol imports during July rose 151 per cent to 64,800 tonne, diesel imports declined 92 per cent to 39,600 tonne.

Some of the reasons for the rise in crude oil imports also included refinery capacity additions during the last one year and dip in domestic crude oil production.

In the month under review, petroleum product exports continued to see a decline in growth due to domestic requirement of the products. The exports fell by 11.2 per cent to 3.17 mt.

According to the Ministry, the domestic petroleum product consumption in July saw an increase mainly due to high diesel demand from power producers.

Increase in diesel sales reported in July was propelled by the fact that it is used as a substitute for more costly fuel oil, prices of which are decontrolled.

Petrol sales in July rose 6.3 per cent to 913,100 tonnes. Jet fuel (ATF) sales saw a single-digit growth at 3.8 per cent in July as high prices led to higher air fares, and the rationalisation of routes by airlines.

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