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The fuel consumption in India surged to a seven-month high in December to about 20.05 million metric tonnes, according to data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry.
The total consumption, acting as a measure of oil demand, recorded a 6.2 per cent rise from 18.89 million metric tonnes in November. Compared to the same period a year earlier, it witnessed a growth of about 2.6 per cent.
LSEG analyst Ehsan Ul Haq noted, “Due to the festive season, demand has been rapidly increasing in recent months. While the growth is expected to continue, it might slow down somewhat as 2023 has shown robust consumption trends.”
Diesel sales, primarily used by trucks and commercially operated passenger vehicles, increased by 0.9 per cent month-on-month to 7.60 million tons. However, gasoline sales dipped by 4.5 per cent in December compared to the previous month, totalling 2.99 million metric tonnes.
Automakers’ data revealed a rise in sports utility vehicle sales but a decline in small car sales despite substantial discounts offered.
“Car sales continue to be robust, indicating healthy demand. However, new cars are more fuel-efficient. Some travel restrictions for cars might persist during the winter, but an improvement is anticipated by February,” Ul Haq remarked.
Sales of bitumen, crucial for road construction, surged by 12.9 per cent from November, while fuel oil usage saw a 9.6 per cent increase in December.
Cooking gas, known as liquefied petroleum gas, witnessed a 5.6 per cent rise to 2.63 million metric tonnes, whereas naphtha sales spiked by 27.9 per cent to approximately 1.33 million metric tonnes, according to the data.
(With Reuters inputs)
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