New Delhi: The sale of petrol and diesel in India declined in December, according to preliminary data from state-owned firms. The drop in demand is attributed to the onset of winter, which typically leads to reduced consumption. This trend is common as people tend to travel less during the colder months, impacting fuel sales.
In December 2023, the sales of petrol from the three state-owned firms, which collectively dominate 90 per cent of the fuel market, witnessed a 1.4 per cent decline to 2.72 million tonnes compared to the same period the previous year. Additionally, diesel demand experienced a more significant decline, dropping by 7.8 per cent to 6.73 million tonnes during the same period.
The onset of the winter season in northern India led to the tapering of air-conditioning demand.
Petrol sales dropped 4.9%
On a month-on-month basis, the sales of petrol experienced a 4.9 per cent decrease compared to the consumption of 2.86 million tonnes in November. Similarly, diesel demand also declined by 0.8 per cent month-on-month, compared to 6.79 million tonnes in November.
Diesel holds the position of the most consumed fuel in India, constituting nearly 40 per cent of all petroleum product consumption. The transport sector contributes to 70 per cent of total diesel sales in the country.
Recent trends in fuel consumption have displayed fluctuations, with an increase in demand for both petrol and diesel in October, followed by a 7.5 per cent decline in diesel consumption in the subsequent month.
Petrol consumption in December
In December 2023, petrol consumption witnessed a 7.1 per cent increase compared to the pandemic-affected December 2021 and a significant 21.5 per cent surge compared to the pre-pandemic December 2019.
Diesel consumption also rose by 4.3 per cent over December 2021 and 2.7 per cent compared to December 2019.
Meawnhile, the jet fuel (ATF) sales experienced a 3.8 per cent year-on-year increase but remained 6.5 per cent lower than December 2019 due to incomplete resumption of international flights post-pandemic.
ATF consumption was 25.5 per cent more than in December 2021, but lower than 628,400 tonnes used in pre-COVID December 2019. Month-on-month jet fuel sales were 2.6 per cent higher than 628,400 tonnes in November 2023.
Cooking gas (LPG) sales remained almost flat year-on-year but showed an 8.1 per cent increase compared to December 2021 and a 16.4 per cent rise compared to December 2019. Month-on-month, LPG demand increased by 6.2 per cent from November 2023.
(With PTI inputs)
