India's fuel demand posts first monthly gain since June.

India's fuel demand increased for the first time in September since June because of the easing COVID restrictions. Even though the demand raised, consumption remained weaker than a year earlier, government data showed.

Consumption of refined fuels, a proxy for oil demand, rose to 15.47 million tonnes in September, the first monthly increase since June when demand rose to 16.09 million tonnes.

However, demand fell by 4.4% from the same period a year earlier, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.

Demand in August was the weakest since April, due to a negligible amount of economic activity and transport restrictions.

Diesel consumption, which accounts for about 40% of overall refined fuel sales in India and is also a key parameter for the economic growth of the country, rose to 5.49 million tonnes last month from 4.85 million tonnes in August.

However, on an annual basis, the demand for diesel declined by about 6%.

Sales of petrol rose by 3.3% from a year earlier and by 2.9% in August.

Sales of cooking gas (LPG) increased by 4.8% to 2.27 million tonnes from a year earlier, while naphtha sales rose to 1.14 million tonnes.

Sales of bitumen, used for making roads, rose 38.3% from last year, and fuel oil decreased by 7.4%.

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