You are here: Home » Economy & Policy » News
Business Standard

India's fuel demand to rebound in 2021-22 with 10% growth

A reflating economy will drive petrol and diesel demand, according to Oil Ministry's projections

Topics
Fuel demand | Oil Ministry | oil and gas

Press Trust of India  |  New Delhi 

crude oil prices
Representational image

India's fuel consumption is likely to rise nearly 10 per cent in the fiscal year beginning April 1, as a reflating economy drives petrol and diesel demand, according to Oil Ministry's projections.

Petroleum product consumption in 2021-22 could hit 215.24 million tonnes, compared to the revised estimate of 195.94 million tonnes consumption of the current fiscal year ending March 31, the ministry's Petroleum Planning and Analysis Cell (PPAC) said.

This will be the fastest pace of fuel product consumption in six years.

As the economy rebounds from its worst contraction on record and industrial activity picks up, fuel consumption is projected to rise. An over two-month-long lockdown imposed to curb the spread of the COVID-19 pandemic had shrunk demand to less than half as most vehicles went off roads, trains stopped plying and airlines halted operations.

The reopening of the economy has brought demand back but diesel - the most consumed fuel in the country - is yet to reach pre-pandemic levels.

This, industry officials say, is mostly because of not all public transport coming back on roads and trains operating at a lower capacity.

Two successive quarters of shrinking GDP saw fuel consumption drop by 13.5 per cent during April-January period of the current fiscal year.

PPAC projected a 13.3 per cent rise in petrol and diesel sales while jet fuel (ATF) consumption is seen rising 74 per cent.

Cooking gas LPG demand is seen expanding 4.8 per cent to 29 million tonnes.

Petrol sales are expected to climb to 31.3 million tonnes in 2021-22 while diesel sales would grow to 83.67 million tonnes.

Naphtha sales at 15.25 million tonnes will be an improvement over 14.9 million tonnes consumption in the current fiscal year.

Consumption of bitumen, used in road construction, is seen rising to 7.1 million tonnes in the next fiscal year from 6.4 million tonnes.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, March 02 2021. 18:51 IST
RECOMMENDED FOR YOU
.