Soaring Pump Prices Weigh on Growth in India Retail Fuel Sales

(Bloomberg) -- A jump in prices has seen growth stall in India’s sales of gasoline and diesel. 

The three biggest retailers in April sold just 0.3% more diesel than in March and 2.1% more gasoline, according to refinery officials with knowledge of the matter. That’s the slowest growth rate since sales rebounded in February following the easing of coronavirus rules that boosted activity at the nation’s factories and service providers. 

The slowdown is mainly because of a surge in pump prices toward the end of March that coincided with higher food prices to dent disposable incomes and consumption. Prices for diesel and gasoline, which together account for more than half of all petroleum products consumed, have risen more than 10% in New Delhi since March 22.

Sales of liquefied petroleum gas, a cooking fuel that had seen fairly stable sales through the pandemic, fell 9% in April in the first decline since November. That follows a 5.6% price increase in late March, the first in more than six months.   

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