Fuel Consumption Rises In July As Economic Activity Accelerates

India’s fuel consumption experienced an increase in July, driven by a boost in economic activity. Data from the oil ministry revealed a 10 per cent rise in petrol sales and a 4.3 per cent uptick in diesel sales compared to the same month last year. 

Jet fuel consumption climbed by 9 per cent, while cooking gas sales saw an 11 per cent increase.

This growth in fuel sales outpaced the gains seen in the first quarter of the current fiscal year. Between April and June, petrol demand rose by 7.1 per cent and diesel by 1.6 per cent. During the same period, jet fuel sales increased by 11.4 per cent, and cooking gas by 5 per cent.

Several factors contributed to the robust petrol consumption in July. Strong car and bike sales, coupled with increased mobility following the end of summer holidays and the reopening of schools, were significant drivers.

Diesel, which accounts for 40 per cent of India's total refined petroleum product consumption and is extensively used in long-haul transport, mining, and farming, saw increased usage, signaling higher overall economic activity.

The demand for jet fuel rose alongside increased air traffic, while a growing customer base fueled the higher consumption of cooking gas. These trends indicate a broader recovery in India’s economy as various sectors resume normal operations and consumer confidence strengthens.