India’s fuel consumption rises in June

India’s fuel consumption rose by 2.6 per cent year-on-year (YoY) to 19.99 million metric tons in June, according to data from the Petroleum Planning and Analysis Cell of the oil ministry.

Prashant Vasisht, vice president at India Credit Rating Agency (ICRA), noted the rise was due to solid economic growth and increased tourist activity. “Jet fuel has been gradually improving … In the power sector the power supplies were more regular, leading to the farming and agricultural sector being well supplied and that has also led to less dependence on diesel.”,” he said.

Total consumption in June was 19.99 million metric tons, up from 19.48 million tons last year but down 3.5 per cent from May’s 20.72 million metric tons. Diesel sales fell 5 per cent month-on-month (MoM) to 7.98 million tons but were up 1 per cent YoY.

Gasoline sales rose 4.6 per cent from the previous year to 3.30 million tons, despite a 4.8 per cent drop from May. Bitumen demand increased by over 4 per cent annually, cooking gas sales rose by 3.2 per cent to 2.31 million tons, and naphtha sales gained 1.4 per cent to 1.07 million tons. Fuel oil use increased by nearly 5 per cent YoY in June.

India’s economy, the fastest-growing among major peers, grew 8.2 per cent in the last fiscal year but is expected to slow modestly this year. Manufacturing activity rebounded in June with increased output and the fastest rate of hiring in over 19 years, despite elevated inflationary pressures.

Attribution: Reuters citing Petroleum Planning and Analysis Cell