In a noteworthy uptick, India experienced a 5.7% year-on-year surge in fuel consumption during February, as indicated by government data. The driving force behind this increase can be attributed to robust factory activity in the country, which stands as the world’s third-largest oil importer and consumer.
According to the most recent report from the Petroleum Planning and Analysis Cell (PPAC), total consumption, serving as a reliable proxy for oil demand, reached 19.72 million metric tons (equivalent to 4.98 million barrels per day) in February. This marked a notable rise from the 18.66 million tons recorded in the same period last year.
Breaking down the figures, the daily oil demand exhibited a 5.1% increase from January, with 4.74 million barrels per day (20.04 million metric tons) consumed.
Diesel, primarily utilised by trucks and commercially operated passenger vehicles, witnessed a substantial 6.2% year-on-year growth, reaching 7.44 million tons in February. On a daily basis, this translated to a 6.8% month-on-month increase, totalling 1.88 million barrels per day.
February saw the manufacturing industry in India flourishing, with accelerated global demand and lower inflationary pressures driving activity expansion at its fastest pace in five months, according to a recent private survey.
Gasoline sales exhibited a robust 8.9% year-on-year increase in February, reaching 3.02 million tons. Similarly, cooking gas, or liquefied petroleum gas (LPG) sales, saw an 8.5% rise to 2.59 million tons. Naphtha sales also surged by 11.7%, totalling approximately 1.19 million tons compared to the previous February.
However, there was a notable 11.2% year-on-year decrease in fuel oil consumption during February, signalling a shift in consumption patterns in the country.
