India's Petrol Consumption Rises 7% Amid Summer Season, Diesel Demand Declines

New Delhi: With the onset of summer season, fuel demand is likely to go up as India’s petrol consumption surged 7 per cent in the first half of April, but diesel sales were down by 9.5 per cent. Petrol sales of three state-owned firms, which control 90 per cent of the fuel market, rose to 1.22 million tonnes during April 1-15 as against 1.14 million tonnes of consumption in the same period last year, a preliminary data of state-owned firms showed on Tuesday. As per the data, the diesel demand, however, dipped by 9.5 per cent to 3.14 million tonnes. While petrol sales were up mostly due to an increase in use of personal vehicles on the back of a price cut, crop harvesting season as well as the onset of summer which will increase the demand for air conditioning in cars is likely to reverse the trend in diesel demand.

Petrol and diesel prices were last month reduced by Rs 2 per litre, ending a nearly two-year-long hiatus in rate revision. “Month-on-month petrol sales dropped 3.6 per cent when compared to 1.27 million tonnes of consumption in March 1-15. Diesel demand too was down 2.7 per cent month-on-month when compared to 3.22 million tonnes in the first half of March,” the data showed.

Diesel is India's most consumed fuel, accounting for almost 40 per cent of all petroleum product consumption. Transport sector accounts for 70 per cent of all diesel sales in the country. It is also the predominant fuel used in agriculture sectors, including in harvesters and tractors. Petrol consumption has consistently shown a year-on-year rise, diesel consumption has been on a see-saw - rising in one month and falling in another.

Consumption of petrol during the first half of April was 9.2 per cent more than in the COVID-marred April 1-15, 2022, and 56.5 per cent more than in the first half of April 2020. Diesel demand was up 4.7 per cent over April 1-15, 2022, and 27.9 per cent compared to the first half of April 2020. “Jet fuel (ATF) sales also rose 10.4 per cent year-on-year to 3,35,700 tonnes during April 1-15, 2024. But this was 1.2 percent lower month-on-month. Like petrol and diesel, ATF demand too is now firmly above pre-Covid levels,” the data showed.

The data further showed that ATF consumption was 34.3 per cent more than in April 1-15, 2022, and 18.4 per cent more than in the first half of April 2020. “However, cooking gas LPG sales were up 8.8 per cent year-on-year at 1.2 million tonnes in April 1-15, 2024. LPG consumption was 15.3 per cent higher than in April 1-15, 2022, and 28.3 per cent more than in the first half of April 2020. Month-on-month, LPG demand fell 11.6 per cent against 1.36 million tonnes of LPG consumption during March 1-15,” the data showed.