Petro product usage up 4.9% in Apr-Jun

During the same period of the last financial year, consumption of petroleum products stood at 55.4 MMT.

Data from Petroleum Planning and Analysis Cell (PPAC) showed that the growth was led by a 13.4% growth in jet fuel consumption, followed by 8.1% in diesel and 6.8% in petrol.

A total of 2 MMT aviation turbine fuel (ATF) was consumed during the first quarter of this fiscal, against 1.7 MMT.

Similarly, diesel and petrol consumption stood at 23.9 MMT and 9.4 MMT respectively during the quarter under review, compared to 22.2 MMT and 8.8 MMT, respectively.

The Monthly Tracker for June released by PPAC, showed that consumption of Liquefied Petroleum Gas (LPG), major part of which consists of domestic cooking gas, rose 2.9% to 67.34 lakh metric tonnes in first three months of this fiscal. During same period last fiscal, the LPG consumption across the country stood at 65.41 lakh metric tonnes.

The data gains significance as the rise in petroleum product consumption indicates a growth in vehicular traffic, air traffic and industrial activities.

Last fiscal India registered a rec-ord consumption of fuel products on reviving economic activities.

The rise in consumption increased although crude imports declined during the first three months of the fiscal. According to the report, crude oil imports in terms of quantity stood at 60.1 MMT, against 60.7 MMT during the same period last fiscal.

For June, petroleum product consumption rose 4.3% with a volume of 19.3 MMT compared to same period of previous year.

Demand for transportation fuels also decreased in June following a high base achieved in May. On a year-on-year basis, demand was up by 187,000 barrels per day (BPD), or 4%, according to S&P report.

A report by S&P Global Commodity Insights showed that in June the demand was resilient compared to May amid weaker monsoon and continued strength in agricultural and economic activities.

It noted that although demand for transportation fuels rose in June on a year-on-year basis, India’s oil products demand fell by 40,000 BPD on the month in June mainly due to a drop in demand for naphtha and transportation fuels as the month marks the beginning of the monsoon season leading to lower transportation fuel consumption.

Wang Zhuwei, oil analyst, S&P Global Commodity Insights, said, “With the onset of monsoon in the country, diesel sales saw a small drop in June over last month as demand in the agriculture sector was cut and vehicular movement declined.”

According to S&P Global Commodity Insights, India’s oil demand is expected to grow by 246,000 bpd in 2023 due to robust gasoline (petrol) demand being reported. “Oil demand is holding up quite well and should continue rising supported by solid economic growth with more focus on industrial and construction activity, however third quarter (July-September) is expected to see a seasonal dip due to monsoon,” Zhuwei said.

“India’s oil demand in 2023 is expected to be 7% above 2019, before rising to about 11% in 2024″, Wang Zhuwei added.

Updated: 24 Jul 2023, 10:55 PM IST