In the fiscal year 2023-24, India witnessed a remarkable surge in fuel consumption, setting a new record despite a slight dip in March’s figures. According to data released by the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry, India’s fuel demand soared by 5% year-on-year, attributing the growth primarily to increased sales in automotive fuel and naphtha.
March data showed a minor decline of 0.6% in fuel consumption compared to the same period last year. The total consumption, serving as a proxy for oil demand, stood at 21.09 million metric tonnes, a marginal decrease from 21.22 million tonnes recorded in March the previous year.
However, the highlight of the fiscal year ending in March 2024 was the unprecedented high fuel demand, reaching a record-breaking 233.276 million tonnes, marking a significant increase from the previous year’s 223.021 million tonnes.
Diesel, essential for the transportation sector, particularly trucks and commercial passenger vehicles, saw a notable uptick in sales, growing by 3.1% year-on-year to 8.04 million tonnes in March. Similarly, diesel sales for the fiscal year witnessed a 4.4% increase, reflecting the robust activity in the transportation domain.
Gasoline sales, vital for the automotive industry, experienced a substantial surge in March, up by 6.9% year-on-year to 3.32 million tonnes. For the fiscal year, gasoline sales recorded a commendable 6.4% increase, highlighting the resilience of the automotive sector amidst evolving market dynamics.
Bitumen, crucial for road construction, maintained stability in March but witnessed a noteworthy 9.9% rise in sales for the fiscal year, indicating ongoing infrastructure development projects across the country.
Liquefied Petroleum Gas (LPG), commonly used as cooking gas, witnessed a significant 8.6% surge in sales, reaching 2.61 million tonnes in March. Naphtha, another key industrial fuel, experienced a notable 5.5% rise in sales, reaching approximately 1.19 million tonnes compared to the same period last March, further indicating heightened industrial activity.
Conversely, the usage of fuel oil experienced a decline, with March witnessing a 9.7% year-on-year decrease. The downward trend persisted for the fiscal year, with fuel oil consumption declining by 6.3%, possibly indicating a shift towards alternative energy sources or efficiency measures.
In conclusion, India’s fuel consumption trajectory in the fiscal year 2023-24 exemplifies resilience and adaptability amidst changing market conditions. The surge in automotive fuel and industrial fuel sales underscores the nation’s economic vitality and ongoing infrastructural development initiatives. However, amidst the growth, the declining trend in fuel oil usage suggests a nuanced transition towards more sustainable energy practices—an area warranting further exploration and policy intervention.
