Fuel demand in India drops to lowest in over two years in Sept: PPAC

New Delhi: Diesel consumption in India dropped 3.2 percent to 5.8 million tonnes in September. According to data from the Petroleum Planning and Analysis Cell (PPAC) Naphtha sales too were down by a quarter to 844,000 tonnes. These descending trends together have negated the rise in cooking gas (LPG) and petrol demand and fuel demand in India slipped to its lowest in over two years in September.

Bitumen, a material used for surfacing roads and other outdoor areas commonly known as Asphalt, saw consumption drop by 7.3 per cent to 343,000 tonnes. Fuel oil sales edged 3.8 percent lower in September to 525,000 tonnes.
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Diesel, being the most used fuel in the country and widely used in rural India contributed substantially to the drop in consumption of petroleum products in September. The consumption of Petro products dropped to 16.01 million tonnes, its lowest since July 2017, from 16.06 million tonnes in the same month last year.

However, the sale of petrol rose 6.2 per cent to 2.37 million tonnes, but the sale of jet fuel or ATF fell 1.6 per cent to 666,000 tonnes.

LPG consumption surged 6 per cent to 2.18 million tonnes on the back of government's push for the use of cleaner fuel in household kitchens in rural areas in place of firewood to check pollution and safeguard the health of women.

Kerosene, which is fast being replaced by LPG and natural gas as a cooking medium, saw demand fall almost 38 per cent to 176,000 tonnes. This too contributed to the drop in fuel demand in India.

Petroleum coke consumption was however 18 per cent higher at 1.73 million tonnes.