Strong manufacturing boosts India's May fuel consumption

12 Jun 2023 CW Team

Fuel consumption in India, the third-largest oil user in the world, increased in May, with diesel sales reaching a record high.

Last month, India's factory output increased at the fastest rate since October 2020, while competitors in the area including China, Japan, and South Korea were experiencing prolonged manufacturing difficulties.

According to PPAC data going back to 1998, sales of diesel, which are primarily used by trucks and commercially operated passenger vehicles, surged by about 5.1% in May to an all-time high of 8.22 million tonnes from a month earlier.

Increased manufacturing increased purchasing activity and increased trucking demand. Diesel demand also received a boost from agriculture, particularly rice and wheat harvesting, which was largely completed in April and May.

By resulting in more favourable overall construction activity, India's postponed monsoons helped to support diesel consumption.

The amount of fuel consumed, which serves as a proxy for oil demand, increased from 18.54 million tonnes in April to 20.03 million tonnes in May.

3.35 million tonnes of petrol were sold, 16% more than the previous month.

The data revealed that sales of cooking gas, or liquefied petroleum gas (LPG), jumped 9.3% to 2.35 million tonnes and that sales of naphtha increased 6.5% to 1.15 million tonnes.

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