Fuel consumption increased 4.6% to record high in FY24; fell 0.6% in March

Total consumption however rose 4.6% to a record 233.3 million tonnes in FY24

Fuel consumption in India, a proxy for oil demand, increased 4.6 per cent, to hit a record high of 233.32 million tonne (mt) in FY24.This was lower than the 10.57 per cent rise seen in FY23.

The demand fell by 0.6 per cent on an annual basis in March as a result of lesser petroleum coke use, data released by the Petroleum Planning and Analysis Cell (PPAC) has shown. Consumption of fuel was 21.09 mt in March, down from 21.22 mt in March 2023.

The monthly numbers were pulled down by the lower consumption of petcoke, a by-product created by the refining of bitumen into crude oil. Used in the manufacturing of steel, glass, paint, and fertilizers, petcoke usage fell 16.8 per cent in March to 1.63 mt.

Oil demand usually picks up late February, and rises in tandem with the temperature. Case in point, consumption rose by 13.7 per cent in March, on a sequential basis. Sales of diesel, the most used fuel in the country, rose 3 per cent to 8.03 mt in March. In the past 12 months, sales had reached an all-time high of 8.21 mt in May, 2023.

Petrol sales also reached a four-month high, rising 5.1 per cent to 3.14 mt in October. Sales stood at 2.99 mt in the same month of the previous year.