April local fuel sales up 4.2% annually

India's local oil product sales rose an annual 4.2% in April, slower than the previous month, government data showed on Wednesday, but is likely to have picked up in May as dealers tanked up in anticipation of a price hike.

Local oil product sales, a proxy for domestic oil demand in Asia's third-largest oil consumer, rose to 12.63 million tonnes in April. In March India's refined fuel consumption rose an annual 4.9%.

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Demand for diesel is expected to rise in May as vehicles and diesel-fuelled gensets were used for election campaigning. Also, dealers normally maintain high inventory ahead of fuel price hikes.

India, which had not raised fuel prices since January to avoid a major voter backlash ahead of polls in five states, raised petrol prices from May 15, a day after ruling Congress or its allies won in three states.

A date is yet to be announced for a meeting of a ministerial panel, earlier scheduled to meet on May 11, to consider raising diesel prices.

Demand for petrol could ease in May after a record 8.6% or Rs 5 per litre increase in prices and softening growth in car sales.

Car sales in India, a key indicator for petrol consumption, rose at their lowest pace in two years in April as higher interest rates, fuel prices and vehicle costs crimped demand in the world's second-fastest growing auto market.

India's crude oil imports rose 5.9% in April from a year earlier to 15.84 million tonnes or 3.87 million barrels per day (bpd).

Crude imports would rise this fiscal to March 2012 given that India has commissioned a 120,000-bpd refinery at Bina in the central state of Madhya Pradesh and is expected to start another 180,000-bpd plant at Bathinda in the north in June.

The data for imports and exports could change as it includes estimates for Reliance Industries 580,000 bpd export focussed plant.

Diesel exports rose 10.6% to 1.52 million tonnes last month, while petrol exports were up 5.8% from a year ago.

Oil products import rose 48% while exports rose 10.2% from a year ago.