March 2019 recorded the highest level of monthly petrol consumption in India, thanks to the campaigning for the ongoing general elections, improved economic activity and the reduced price differential between petrol and diesel cars that boosted consumers’ preference for petrol vehicles, according to the oil ministry.
The country consumed 2,577 thousand tonnes of petrol in March, a growth of 7.2 percent over 2,404 thousand tonnes in the same month last year.
However, data for the full financial year 2018-19, released recently, shows petrol consumption growth during the year dropped to 8.06 percent, a 6-year low rate of growth, according to Petroleum Planning and Planning Cell (PPAC), the statistical arm of the Ministry of Petroleum and Natural Gas (MoPNG)
Petrol usage in 2018-2019 stood at 282,84 thousand Tonne, as compared to 261,74 thousand Tonne recorded in the previous financial year (2017-2018).
Cumulative Petroleum Demand
Overall, India’s petroleum product consumption in 2018-2019 rose 2.65 percent to 2,116,40 thousand tonnes, as compared to 2,06,166 thousand tonnes recorded in the previous fiscal. The growth of 2.65 percent was the lowest recorded in the past five years. This was mainly due to a slump in the consumption of polluting fuels including Pet Coke, Fuel Oil, and Kerosene.
“Growth was pulled down by negative growth witnessed in Petcoke (-20.2 percent) and FO (-3 percent) due to regulatory restrictions, and continuing de-growth in SKO due to conscious policy of GoI. Otherwise, auto fuels continued to exhibit healthy growth rates with MS and HSD posting 8% and 3% respectively,” K Ravichandran, Senior Vice President at ICRA told ETEnergyWorld.
He added that India’s petroleum products consumption is projected to grow 3-4 percent in the present financial year ending March 2020.
“There will continue to be headwinds in the growth on polluting fuels such as petcoke and FO. SKO will be gradually replaced by LPG, while transportation fuels and LPG will exhibit robust growth,” Ravichandran said.
DIESEL
India’s diesel consumption in March 2019 rose by a marginal 1.38 percent to 7,451 thousand tonnes, as compared to 7,349 thousand tonnes recorded in the corresponding month a year ago.
According to PPAC, the slight increase in diesel use in the month was attributed to increased infrastructure works across the country in anticipation of general elections and the opening of new mines in Nagaland and Jharkhand.
Cumulatively, diesel consumption during the full financial year 2018-2019 increased 3 percent to 835,20 thousand tonnes, as compared to 810,73 thousand tonnes recorded in the previous fiscal.
Elections boost India’s petrol use to highest-ever
LPG & ATF
Cumulative demand for Liquefied Petroleum Gas (LPG) in 2018-2019 increased 6.8 percent to 249,18 thousand tonnes, as compared to 233,42 thousand tonnes recorded in the previous financial year.
Also, Aviation Turbine Fuel (ATF) consumption last financial year grew 9.1 percent to 8,325 thousand tonnes, aided by an over 13 percent increase in domestic passenger traffic.