India witnessed a significant rise in petrol and diesel consumption during December 2024, as holiday travel and increased agricultural activity boosted demand, reversing the declines seen in previous months, according to preliminary data from state-owned fuel retailers.
The three state-owned firms, which account for 90% of the fuel market, reported a 9.8% year-on-year increase in petrol sales, reaching 2.99 million tonnes compared to 2.72 million tonnes in December 2023. Diesel demand rose by 4.9%, totalling 7.07 million tonnes for the month.
The growth in fuel demand was largely driven by increased road, air, and rail travel during the second half of December, coupled with heightened diesel use in agriculture for kharif crop sowing. Diesel, which constitutes nearly 40% of India’s petroleum product consumption, saw a continued recovery after a subdued monsoon season. The transport sector accounts for 70% of diesel consumption, with significant usage in agriculture through tractors and harvesters.
Month-on-month, petrol sales in December declined by 3.6% compared to November’s 3.1 million tonnes, while diesel demand fell 1.7% from 7.2 million tonnes in the previous month. Despite this, December’s petrol consumption was 8.4% higher than December 2022 and 27.9% above December 2020. Diesel demand was 3.2% lower than December 2022 but marked a robust 48.7% increase from the pandemic-affected December 2020.
Aviation turbine fuel (ATF) sales increased by 6.8% year-on-year to 696,400 tonnes in December, surpassing pre-Covid levels. This marked a 5.2% month-on-month rise from November’s 661,700 tonnes. ATF consumption was 12.1% higher than in December 2022 but remained 40.8% below December 2020 levels.
Cooking gas (LPG) consumption also grew, with sales rising 5.2% year-on-year to 2.87 million tonnes in December. This represented a 4.1% increase from November’s 2.76 million tonnes. LPG demand was 5.7% higher than December 2022 but 14.8% below December 2020.
The holiday season and easing monsoon conditions have driven a recovery in fuel demand across multiple sectors. While petrol and ATF consumption have firmly exceeded pre-Covid levels, diesel usage continues to catch up, reflecting broader trends in transportation and agricultural activities.
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