Petroleum Use Dips in India

26 Jun 2024 CW Team

Aviation turbine fuel saw a remarkable 12.4% increase, reaching 0.71 million tonnes, driven by the surge in domestic and international air travel. The aviation sector is witnessing a strong recovery post-pandemic, with increased passenger traffic and more flights being operational. This upswing in ATF demand reflects the growing momentum in the travel and tourism industry, which had been severely hit by the COVID-19 pandemic.

However, the consumption of LPG, commonly used for cooking, declined by 8.1% to 2.37 million tonnes. This drop is linked to the widespread adoption of electric cooking devices and increased urbanization, which reduces dependence on traditional cooking fuels. Similarly, naphtha usage decreased by 8.9%, while fuel oil consumption fell by 18.6%, indicating a shift in industrial fuel preferences and efficiencies.

India's overall energy landscape is in a transitional phase, with mixed trends across different fuel types. While the decrease in petroleum consumption highlights the impact of changing consumer behaviors and technological advancements, the increase in diesel and ATF usage underscores the sectors' resilience and growth. The data reflects the complex interplay of factors influencing fuel demand, from seasonal variations and economic activities to shifts in technology and consumer preferences.

In May 2024, India's overall petroleum consumption fell by 2.1% year-on-year, amounting to 19.4 million tonnes, marking the first decline since November 2021. Despite this overall decrease, diesel and aviation turbine fuel (ATF) defied the trend, showcasing significant growth. The dip in consumption is largely attributed to a decline in demand for products like liquefied petroleum gas (LPG), naphtha, and fuel oil. Diesel, which constitutes about 40% of India?s refined fuel consumption, increased by 4.1% in May, reaching 7.64 million tonnes. This surge is attributed to robust demand from sectors such as agriculture, transport, and infrastructure. The monsoon season, which typically reduces diesel demand due to decreased agricultural activities, had not yet commenced, contributing to the rise. Aviation turbine fuel saw a remarkable 12.4% increase, reaching 0.71 million tonnes, driven by the surge in domestic and international air travel. The aviation sector is witnessing a strong recovery post-pandemic, with increased passenger traffic and more flights being operational. This upswing in ATF demand reflects the growing momentum in the travel and tourism industry, which had been severely hit by the COVID-19 pandemic. However, the consumption of LPG, commonly used for cooking, declined by 8.1% to 2.37 million tonnes. This drop is linked to the widespread adoption of electric cooking devices and increased urbanization, which reduces dependence on traditional cooking fuels. Similarly, naphtha usage decreased by 8.9%, while fuel oil consumption fell by 18.6%, indicating a shift in industrial fuel preferences and efficiencies. India's overall energy landscape is in a transitional phase, with mixed trends across different fuel types. While the decrease in petroleum consumption highlights the impact of changing consumer behaviors and technological advancements, the increase in diesel and ATF usage underscores the sectors' resilience and growth. The data reflects the complex interplay of factors influencing fuel demand, from seasonal variations and economic activities to shifts in technology and consumer preferences.

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