Fuel Sales Rise Against Expectations Post-Demonetisation

Fuel sales have risen more than 10 per cent after the government banned large denomination notes in contrast to speculations that they will dip due to a demonetisation-led slowdown.

People rushed to tank up fuel to take advantage of the Rs 500 and Rs 1,000 note ban exemption petrol stations enjoyed along with hospitals, railways and key public services, the Economic Times reported. About 89,000 kilo litres of petrol have been sold by state-run companies such as Indian Oil Corp, Bharat Petroluem and Hindustan Petroleum between 9 November and 7 December, data from one of the firms said. This is 11 per cent more than the average daily sales in November last year and 1 per cent less than October, this year.

Diesel sales have been way higher with 225,000 kilo litres sold between 9 November and 7 December. This was 11.4 per cent more than in November 2015 and 7.6 per cent higher than October this year. The data has taken into account the fuel dispatched to the oil companies and not the sales made at the petrol stations.