India's Fuel Consumption Hits Seven-Month High In December
India's fuel consumption surged to a seven-month high in December, reaching approximately 20.054 million metric tons (mmt), according to data released by the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry.
The total consumption, serving as a proxy for oil demand, marked a notable 6.2 per cent increase from November's 18.89 million tons (mt) and reflected a 2.6 per cent rise compared to the same period in the previous year.
Diesel, primarily utilised by trucks and commercially-run passenger vehicles, experienced a month-on-month growth of 0.9 per cent, reaching 7.6 mt.
However, sales of petrol witnessed a decline of 4.5 per cent in December compared to the previous month, registering at 2.99 mt.
Various other petroleum products also saw significant shifts in sales during December. Bitumen, used in road construction, exhibited a notable increase of 12.9 per cent from November, while fuel oil consumption rose by 9.6 per cent during the same period. Cooking gas, or liquefied petroleum gas (LPG), recorded a 5.6 per cent rise, totaling 2.63 mt, and naphtha sales experienced a substantial surge of 27.9 per cent, reaching about 1.33 mt.
The robust growth in fuel consumption signifies a positive trajectory in economic activities and industrial operations, aligning with the broader recovery witnessed in the latter part of 2023.
The increase in demand for various petroleum products indicates a buoyant domestic market, reflecting positively on India's economic health. As the nation continues its journey towards recovery, monitoring fuel consumption trends remains crucial for gauging economic vitality and industrial momentum.
