India’s fuel demand jumps 8.6% in June

India’s fuel demand jumped 8.6 per cent in June as falling rates led to rise in consumption.

Fuel consumption in June totalled 17.99 million tonne (MT) as compared to 16.56 MT in the same month last year, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed. The rise was more than double of 3.8 per cent growth seen in May when demand totalled 18.1 MT.

 During June, petrol sales were up 14.9 per cent at 2.37 MT while diesel consumption was up 7.75 per cent to 7.32 MT. In May, petrol was up by a meagre 2 per cent and diesel consumption was flat as high oil prices dented demand.

While Rs 3.8 a litre hike in petrol and Rs 3.38 in diesel propelled rates to hit an all-time high of Rs 78.43 a litre and Rs 69.31, respectively, on May 29 in Delhi, prices cooled off in June. Petrol price was down to Rs 75.55 by the end of the month and diesel to Rs 67.38.

Rates have since gone up marginally. Petrol costs Rs 76.53 a litre and diesel Rs 68.23.

 In April, petrol sales had risen 9.2 per cent while diesel, which makes up for roughly 40 per cent of all the petroleum product consumed in the country, posted a 2.6 per cent growth in consumption.