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India's petrol consumption soared 12.3 per cent in April, but diesel sales continued to slide despite the country entering into hectic electioneering for general elections, preliminary data of state-owned firms showed on Wednesday.
Petrol sales of three state-owned firms, which control 90 per cent of the fuel market, rose to 2.97 million tonnes in April compared to 2.65 million tonnes of consumption in the same period last year.
Diesel demand dropped 2.3 per cent to 7 million tonnes. Demand for the nation's most consumed fuel had fallen 2.7 per cent in March.
This is despite India going into general elections where automobiles largely driven on diesel are used extensively for campaigning.
While petrol sales were up mostly due to an increase in the use of personal vehicles on the back of a price cut, crop harvesting season and the onset of summer, which will increase the demand for air conditioning in cars as well as the electioneering holds out hope for reversing the trend in diesel demand.
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Petrol and diesel prices were in mid-March reduced by Rs 2 per litre, ending a nearly two-year-long hiatus in rate revision.
Month-on-month petrol sales dropped 5.3 per cent compared to 2.82 million tonnes of consumption in March. Diesel demand was however 4.4 per cent higher month-on-month against 6.7 million tonnes in March.
Diesel is India's most consumed fuel, accounting for almost 40 per cent of all petroleum product consumption. The transport sector accounts for 70 per cent of all diesel sales in the country. It is also the predominant fuel used in agriculture sectors, including in harvesters and tractors.
Petrol consumption has consistently shown a year-on-year rise, diesel consumption has been on a see-saw - rising in one month and falling in another.
Consumption of petrol during April was 15.3 per cent more than in the COVID-marred April 2022, and 56.5 per cent more than in the same month of 2020.
Diesel demand was up 4.4 per cent over April 2022, and 22.1 per cent compared to April 2020.
Jet fuel (ATF) sales rose 7 per cent year-on-year to 6,56,700 tonnes during April 2024. But, this was 2 per cent lower month-on-month when compared to 6,70,100 tonnes in March.
Like petrol and diesel, ATF demand too is now firmly above pre-Covid levels.
ATF consumption was 27.2 per cent more than in April 2022 and 16.3 per cent more than in April 2020.
Cooking gas LPG sales were up 12 per cent year-on-year at 2.45 million tonnes in April 2024. LPG consumption was 9 per cent higher than in April 2022 and 26.9 per cent more than in April 2020.
Month-on-month, LPG demand fell 8.3 per cent against 2.67 million tonnes consumption during March, the data showed.
ATF price up 0.7%, commercial LPG rate cut Rs 19/unit
The increase reverses the marginal 0.5 per cent cut effected on April 1. Rates in Mumbai on Wednesday were increased to Rs 95,173.70 per kl from Rs 94,466.41. Prices differ from state to state depending on the incidence of local taxes. Alongside, oil firms also cut the price of commercial LPG by Rs 19 to Rs 1,745.50 for a 19-kg cylinder. This is the second monthly reduction in rates. Prices were on April 1 reduced by Rs 30.5 per 19-kg cylinder. Rates of the cooking gas used in domestic households, however, remained unchanged at Rs 803 per 14.2-kg cylinder. April 1 was the first reduction in commercial LPG prices since January.
Rates had gone up Rs 14 per cylinder on February 1 and Rs 25.5 on March 1. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise prices of ATF and cooking gas on 1st of every month based on the average price of benchmark international fuel and foreign exchange rate.
