Punjab Dec 2, 2024(Navroze Bureau) – Demand for petrol and diesel in India increased in November, preliminary data from public sector companies showed. Consumption had declined in October but consumption improved in November due to the festive season. Petrol sales increased year-on-year, while diesel consumption had declined since the monsoon and November was the first month in which diesel consumption recorded an increase. Petrol sales of state-run companies rose 8.3% to 31 lakh tonnes in November, as against 28.6 lakh tonnes consumed in the same month last year. Diesel consumption rose 5.9% to 72 lakh tonnes.
Sales were slow during monsoon
Petrol and diesel sales remained slow during the monsoon months as rains reduced vehicular movement and demand from the agriculture sector. However, petrol demand picked up after rains subsided but diesel consumption was down year-on-year. Petrol sales rose 4.7% to 29.6 lakh tonnes in October, while diesel consumption was up nearly 11% to 65 lakh tonnes in October. Diesel is the most consumed fuel in India, accounting for nearly 40% of all petroleum product consumption.
Transport sector contributes 70%
The transport sector contributes about 70% to the total consumption of diesel in India. Apart from this, it is also used prominently in the operation of harvesters and tractors in the agricultural sector. Petrol consumption in November was 16.5% higher than November 2022 and 33.5% higher than the Kovid-19 affected November 2020. At the same time, the demand for diesel was 1.8% less than November 2022, but 8.5% higher than November 2020.
Moreover, jet fuel (ATF) sales rose 3.6% year-on-year to 650,900 tonnes in November 2024, up 2.3% from 636,100 tonnes sold in October.
Summary
Demand for petrol and diesel in India saw an increase in November, according to preliminary data from public sector companies. After a dip in consumption during October, demand rebounded in November, driven by the festive season. Petrol sales recorded a year-on-year rise of 1.5%.