Festive demand drives up Indian state refiners gas, oil sales in October

Representative Image (Illustration by Suneesh K.)

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' Index, 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, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of the country's retail fuel outlets.