It is all because of low prices. The volumetric growth of petroleum products continued to benefit from the low price environment in March 2015 as well. Total petroleum sales by the oil marketing companies saw a growth of 14 percent year-on-year in March 2015, primarily due to low price environment and corresponding improvement in volumetric sales of major petroleum products.
Motor gasoline (petrol) has seen tremendous growth in the ongoing year due to CNG curtailment and the decrease in oil prices worldwide. In March alone, sales volumes of the fuel grew by 27 percent year-on-year as the petrol to CNG price ratio continued to converge. Motor gasoline saw a surge of over 18 percent in 9MFY15 as well. The prospects for motor gasoline in the coming months are quite progressive due to continued low prices that spur demand, and no change in CNG curtailment strategy.
High speed volumes climbed by four percent month-on-month, and 34 percent year-on-year due as the harvesting season is about to begin. The same saw a growth of around nine percent year-on-year in 9MFY15. And this upward trend in the volumetric sales of high speed diesel is likely to continue in the coming months as harvesting carries on.
Though the furnace oil sales declined by 2.76 percent year-on-year during the three quarters of FY15, the growth was positive in March 2015. Furnace oil sales in March were highest of the last six months, and the volumetric sales are unlikely to take a downward trend in the wake of summer season and rising electricity demand.
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