Fuel Demand Rises in India, Except for Diesel in October 2024

04 Nov 2024 CW Team

India's consumption of petrol, aviation turbine fuel (ATF), and LPG surged in October 2024 compared to the same period last year, signaling increased demand in a strengthening economy. According to data released by public sector oil companies, petrol sales grew by 7.3%, LPG consumption jumped by 7.5%, and jet fuel demand rose 2.5% year-on-year.

The rise in petrol sales, which reached 3.1 million tonnes in October, up from 2.87 million tonnes a year ago, was driven by robust vehicle sales across urban and rural areas. Jet fuel consumption hit 6,47,700 tonnes, fueled by increased air travel, as domestic airlines carried 1.30 crore passengers in September, a 6.38% increase from the previous year.

LPG sales rose to 2.82 million tonnes, supported by the continued expansion of the Pradhan Mantri Ujjwala Yojana (PMUY), which has issued over 10 crore deposit-free connections as of August 2024. The government recently completed the release of an additional 75 lakh LPG connections.

In contrast, diesel sales declined by 3.3% due to the extended monsoon, which delayed the sowing season and reduced demand from the agricultural sector.

This shift in fuel consumption patterns reflects India's dynamic economic landscape and ongoing energy transition efforts.

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