Petrol, diesel, LPG consumption show above average increase in December
In December, fuel demand experienced an unprecedented upswing, eclipsing annual averages. Diesel saw a remarkable boost, complemented by notable increases in petrol and LPG use, highlighting a vibrant economic pulse.
By ET Bureau |
New Delhi: Petrol, diesel and LPG sales in December exceeded their average growth rates for the year, with diesel demand rising sharply by 5% on-year.
Petrol sales increased 6.7% in December, compared with a growth of 6.3% in the April-December period, according to provisional data from the oil ministry. Diesel consumption rose 5% in December, significantly higher than the 3% growth recorded during April-December. LPG consumption, largely used for cooking in India, climbed 12.7% in December, compared with 7.9% growth in the April-December period. Aviation turbine fuel (ATF) sales, however, declined 0.5% in December, against a growth of 1.4% during the same nine-month period. Diesel demand has recovered sharply in recent months after remaining subdued in the early part of the fiscal year, primarily due to rainfall-related disruptions. Diesel accounts for about 40% of total refined product consumption in the country, and its demand has a significant bearing on India's overall oil consumption and import requirements.
Rising diesel use is also seen as a barometer of economic activity, given its extensive use in goods transportation, mining, agriculture and backup power generation for commercial and industrial units. Petrol sales has been supported by higher vehicle sales and increased holiday travel.
Meanwhile, mass flight cancellations by IndiGo, the country's largest airline, weighed on ATF consumption, which has been weak this year. LPG demand has been boosted by its growing use as substitute fuel by industry amid high natural gas prices.
