Two-wheelers guzzle 62% petrol , cars only 27%: Survey

NEW DELHI: The government touted petrol as the rich man’s fuel to stop subsidy. But a recent survey shows 62% of the fuel flowing into the market is consumed by the aam aadmi’s sawari — two-wheelers — while about 2% is being sold loose by people to earn their livelihood in remote villages and coastal areas.


The survey, conducted by Nielsen for the oil ministry’s thinktank — Petroleum Planning and Analysis Cell — shows cars account for about 27% of consumption, three-wheelers for 6% and about 2% is used for "other purposes" such as running generators.

The survey is part of the ministry’s efforts at preparing a roadmap for managing the domestic oil market.

Hamstrung by the rising oil import bill — which increased 9.5% to Rs 347,432 crore in the April-August period and subsidy estimates ballooning to Rs 180,000 crore, oil minister M Veerappa Moily is launching a fuel conservation campaign on Tuesday as a way to check growth in demand.

Petrol consumption is pegged at nearly 16 million tonnes. The survey shows utility vehicles burning over 4% of this. It shows that in coastal regions and remote villages, people buy petrol from retail outlets in drums and barrels and sell it at a premium to fishing boats and bikes etc, respectively . The fuel is also being used to run small generators in tea gardens of West Bengal and Assam.

Diesel, in contrast, follows a more predictable consumption pattern. The study says 66% of the fuel is used for transport, 19% for agriculture , more than 2% for powering mobile towers and the remaining for running backup generators and construction equipment.

Diesel consumption is estimated at 69 million tonnes. Light and heavy commercial vehicles — mini vans and trucks — and buses burn 38% of the total diesel sold in the country. Cars and sports utility vehicles account for about 19%, much in line with the rise in sale of diesel cars due to the fuel’s price differential with petrol due to continuing government subsidy.

Much of this subsidy could be benefitting commercial enterprises such as taxi operators. The survey shows use of diesel cars and SUVs for commercial purpose is the highest in south at 20% and lowest in the eastern region at 16%. Among the four zones, transport has the highest share of diesel consumption at 77% in south.

The sector shows the lowest share in the north, accounting for 59% of the total sectoral consumption . North, however, notches up the highest diesel consumption rate in agriculture at over 24% against 10% in south, the lowest.