Discover the latest trends in fuel consumption in India as petrol and diesel reach new heights. Explore the statistics, analysis, and insights into the demand for crude oil. Stay informed about the robust sales and their potential impact on the Indian oil industry's future.


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The consumption of Petrol and Diesel hit new heights in the month of May. According to government statistics, diesel sales in India, the third-largest crude importer in the world, increased 13% from a year ago last month. The entire usage, which also includes fuels like liquefied petroleum gas and naphtha, rose 9% while gasoline consumption rose 11%.

According to an analysis of data released by the Petroleum Planning & Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas, consumption of diesel, the most popular refined petroleum product in India, increased 12.8% annually and 5% monthly to 8.22 million tonnes in May. In India, diesel makes up little over 40% of all petroleum products used. 

Petrol comes in second with a share of about 17%. 3.35 million tonnes of gasoline were used in May, an increase of 11% YoY and 16.4% MoM. For both gasoline and diesel, the last high point occurred in March and April, respectively. For both gasoline and diesel, the last high point occurred in March and April, respectively. This pattern of regular highs is a reflection of India's fuel consumption being healthy.

In the similar context the demand for the crude oil surged 9% on an YoY basis while 8% on the MoM basis to 20.03 million tonnes. This was lower than the record level of 20.50 million tonnes in March 2023. 

The robust sales followed the Indian economy exceeding forecasts to grow by 6.1% in the quarter ending in March, though expansion is anticipated to decline during the remainder of this year. The increase in purchasing would also benefit India's government-run fuel merchants, who have maintained the same pricing for diesel and gasoline since April of last year.

With these robust forecasts it is to be seen, how the future of the Indian oil industry beholds!

- Charu Kapoor

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