Indian sales of diesel and petrol surged to records in May, in a rare bullish sign for global oil markets.
Diesel sales in the world’s third-biggest crude importer rose 13% last month from a year earlier, according to government data. Petrol was up 11%, while overall consumption, which also includes fuels such as liquefied petroleum gas and naphtha, increased 9%.
The strong sales came after the Indian economy beat expectations to expand by 6.1% in the quarter through March, although growth is expected to slow through the rest of this year. The uptick in buying will also be a fillip for India’s state-run fuel retailers, who have kept diesel and gasoline prices unchanged since April last year.
Consumption in May was higher-than-estimated and there’s some upside potential given the outperformance, Standard Chartered analysts Emily Ashford and Paul Horsnell said in a note.
Executives at state refiners Indian Oil, Bharat Petroleum and Hindustan Petroleum didn’t immediately reply to phone calls seeking comment.
