Fuel demand growth slows to 3.5% in Apr-Jan

New Delhi: India's petroleum products demand growth has slowed to 3.5% this fiscal year from 5.1% in the previous year on slower growth in diesel consumption and a decline in the sales of bitumen that's used for building roads.

Diesel, which accounts for 38% of the country's petroleum product sales volume, grew 2.4% in the April-January period, down from 4.3% in the previous year. The sales were affected by an extended rainy season that affected freight movement. Diesel sales have, however, picked up in the last few months, with sales in January registering a 4.2% year-on-year growth.

The January growth was "driven by increased demand due to holiday season, manufacturing and freight movement," the oil ministry said in its monthly analysis. It was also supported by increased rural consumption, government spending and Mahakumbh tourism, it said.


Consumption of bitumen, used almost entirely for road building in the country, fell 4.9% in the April-January period. In January though it grew by 1.7%. A decline in bitumen consumption is indicative of slower road building in the country. Sales of naphtha fell 2.9%.

Petrol sales have been robust through the year, growing at 7.9% in the April-January period and 6.7% in January. Last year, it grew 6.2%.

"The growth in petrol is primarily attributed to increased personal mobility and winter tourism (largely dominated by Mahakumbh 2025)," the ministry said.