In the backdrop of the winter season, India witnesses a decline in petrol and diesel sales for December. Preliminary data from state-owned firms highlights a 1.4% drop in petrol sales, totaling 2.72 million tonnes, compared to the same period in the previous year. Simultaneously, diesel demand records a significant decrease of 7.8%, amounting to 6.73 million tonnes.
The onset of winter, particularly in northern India, is cited as a primary factor contributing to the reduction in air-conditioning demand, impacting fuel consumption. Month-on-month figures reveal a 4.9% decline in petrol sales and a 0.8% decrease in diesel demand compared to November.
Diesel, constituting almost 40% of all petroleum product consumption, remains India’s most consumed fuel, with the transport sector accounting for 70% of its sales. Despite the recent dip, December 2023 petrol consumption reflects a 7.1% increase compared to December 2021 and a substantial 21.5% rise compared to the pre-pandemic December 2019.
Diesel consumption during December 2023 is up by 4.3% from the same month in 2021 and 2.7% higher than December 2019 figures.
Jet fuel (ATF) sales show a 3.8% year-on-year increase, reaching 644,900 tonnes in December. However, this remains 6.5% lower than the corresponding period in 2019 due to the incomplete resumption of international flights post-pandemic. Despite the year-on-year growth, ATF consumption is higher than December 2021 but falls short of the pre-COVID December 2019 levels.
Cooking gas LPG sales remain nearly flat year-on-year at 2.73 million tonnes in December. However, LPG consumption exhibits an 8.1% increase compared to December 2021 and a notable 16.4% surge compared to the pre-COVID December 2019. Month-on-month, LPG demand rises by 6.2%.
