Petrol sales rose 9.8% year-on-year to 2.99 million tonnes in December, compared to 2.72 million tonnes in the same month last year. Diesel demand also increased by 4.9% to 7.07 million tonnes, marking the second consecutive month of growth for both fuels. In November, petrol consumption had grown by 8.3%, while diesel demand was up by 5.9%.
The rise in fuel sales was attributed to holiday road trips, as well as increased travel by air and rail. Additionally, agricultural demand for diesel during kharif crop sowing contributed to the surge.
Petrol sales were 8.4% higher than in December 2022 and 27.9% above levels in December 2020, which was impacted by the COVID-19 pandemic. However, diesel consumption, while 48.7% higher than December 2020, remained 3.2% lower than December 2022.
On a month-on-month basis, petrol sales in December declined by 3.6% compared to November’s 3.1 million tonnes, while diesel demand fell by 1.7% from November’s 7.2 million tonnes.
Diesel, accounting for 40% of India’s total petroleum product consumption, is primarily used in the transport and agriculture sectors, which make up 70% of diesel sales.
Jet fuel (ATF) sales also saw a 6.8% year-on-year increase in December to 696,400 tonnes, up 5.2% from November. However, ATF consumption was still 40.8% lower than in December 2020.
Cooking gas (LPG) sales rose 5.2% year-on-year to 2.87 million tonnes in December, a 4.1% increase from November’s 2.76 million tonnes. Compared to December 2022, LPG consumption grew by 5.7%, but it was 14.8% lower than in December 2020.
This seasonal uptick highlights the strong correlation between fuel demand and festive travel, alongside agricultural and industrial needs.