Retail Sale Of High Speed Diesel Drops By 0.4%

Sluggish economy, change in crop pattern, emergence of new automobile fuels and drought in some parts of the country contributed to a drop in the retail sale of high speed diesel (HSD) during 2000-01.

According to the petroleum ministry, the retail sale of HSD in the country dropped from 29,615 thousand metric tonne (tmt) in 1999-2000 to 29,497 tmt in 2000-01 -- a decline of 0.4 per cent.

Among the states, Gujarat recorded the highest decline of 4 per cent, followed by Madhya Pradesh 2.8 per cent, Andhra Pradesh 2.7 per cent, Rajasthan 2.6 per cent, and Maharashtra 1.3 per cent.

 

Though these five states contribute 36 per cent HSD sales in the country, their loss of 282 tmt is more than the all-India loss of 118 tmt in retail sale of high speed diesel.

The petroleum ministry is of the view that the slowdown in the economy during 2000-01 was mainly responsible for the drop in high speed diesel sales.

During 2000-01, the country recorded a GDP growth of 5.8 per cent against 6.4 per cent in the preceding year, the index of industrial production came down from 6.5 per cent in 1999-2000 to 5.5 per cent in 2000-01, cement industry registered a negative growth of 0.4 per cent in 2000-01 against a positive growth of 14.1 per cent, steel industry grew by 5.3 per cent in 2000-01 against 14 per cent in the previous year, and agricultural growth came down to 1.3 per cent from 4.2 per cent in 1999-2000.

The ministry says that the factors which will have a long-term impact on diesel sales in the country include change in crop pattern from paddy to cotton in the northern region, substitution of compressed natural gas as auto fuel, shift in transportation mode from road to rail and use of high capacity trucks.

The factors that have short-term impact on diesel sale include drought in Gujarat, Madhya Pradesh, Rajasthan and parts of Maharashtra, free availability of white kerosene, slowdown in cement, machinery and chemical industries, and slackness in construction activities.