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Mumbai , Nov. 20

DIESEL consumption figures for October look marginally better as petroleum products continue their slow crawl towards positive territory.

Retail sales of diesel have clocked a positive 0.2 per cent growth in October. Combined retail and bulk sales show that diesel has cut its negative growth rate to - 0.1 per cent last month.

The fuel is considered inextricably linked to the country's GDP growth rate and analysts vouch that every 1.5 per cent increase in diesel consumption points to one per cent growth in GDP. Only, the continuous negative consumption figures over the last two years never quite seemed to reflect the recent economic gains.

One of the reasons, say oil PSU officials, has been the burgeoning adulteration business. Substitution of diesel by kerosene imported at Gujarat and Kerala shores has been one of the reasons for the low official demand figures. This seems to have eased partially with the Gujarat Government increasing the sales tax on imported kerosene last month.

Petrol growth rates touched 7.8 per cent in October (5.8 per cent). Sales of LPG were at 7.9 per cent, considerably lower than last year's figures of 17.1 per cent.

According to a senior Hindustan Petroleum Corporation Ltd official, LPG sales have hit a plateau as most of the demand backlog has been cleared in the last 24 months. Sales are expected to stabilise at five per cent levels.

Naphtha consumption also fell to - 12.1 per cent compared to 3.5 per cent during last October, mostly because of growing imports, officials said. Furnace oil and low sulphur heavy stock consumption grew marginally to 2.7 per cent (2 per cent).

Consumption of indigenous kerosene, sold mostly through the public distribution system, continued with its negative growth rate of - 3.8 per cent (-3.4 per cent), while ATF sales improved considerably to 10.3 per cent (4.8 per cent).

Sales of branded lubricants and greases have taken a hit with small-time lube blenders prospering in many parts of the country. Lubes sales were down - 14.8 per cent (13.4 per cent).

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