Petroleum Product Demand Surges 2.6% in June

9 Jul 2024 , 09:37 AM

Domestic demand for petroleum products increased 2.6% year on year in June, driven by increases in petrol and jet fuel. Petrol sales up 4.6% year on year in June, but diesel sales increased only 1%, according to oil ministry data.

Diesel accounts for 40% of the country’s total petroleum product sales. Petrol accounts for 17%, followed by LPG at 12%.

In June, sales of LPG, which is largely used for cooking in the country, increased by 3.2%. Jet fuel use increased by 10% in June, boosted by an increase in holiday travel. Bitumen sales, which are primarily used in road construction, increased by 4.2%, while pollution-causing petcoke usage increased by 2%.

Petrol sales were boosted by robust new vehicle sales and rising tourism. Diesel is mostly utilised for long-distance transportation, mining, irrigation, and backup generators.

For years, a significant shift in preference from diesel-powered to petrol-powered passenger vehicles has resulted in diesel sales growth trailing that of petrol. Indian Railways is likewise reducing its diesel consumption, as it shifts to electricity.

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