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Preliminary data from the Petroleum Planning and Analysis Cell (PPAC) of India’s oil ministry revealed a marginal decline in total consumption, a key indicator of oil demand, in March. Total consumption stood at 21.09 million metric tons (4.99 million barrels per day), down from 21.22 million tons (5.02 mbpd) compared to the previous year.
Despite the slight dip in March, India’s fuel consumption for the 2024 financial year showcased a positive trajectory, marking a 5% increase primarily fueled by heightened sales in automotive fuel and naphtha.
Fuel demand for the fiscal year ending in March reached a record high of 233.276 million tons (4.67 mbpd), contrasting with 223.021 million tons (4.48 mbpd) recorded in the preceding year. Notably, diesel sales, essential for trucks and commercial vehicles, saw a 3.1% year-on-year increase, totaling 8.04 million tons in March and rising by 4.4% for the fiscal year.
March also witnessed a surge in gasoline sales, up by 6.9% year-on-year to 3.32 million tons, contributing to a 6.4% increase for the fiscal year. Similarly, sales of bitumen, crucial for road construction, remained stable in March but saw a notable 9.9% increase for the fiscal year.
Cooking gas, or liquefied petroleum gas (LPG), experienced an 8.6% rise in sales to 2.61 million tons, while naphtha sales surged by 5.5% to approximately 1.19 million tons compared to the previous March.
However, there was a downturn in the usage of fuel oil, declining by 9.7% year-on-year in March and 6.3% for the fiscal year.