India’s fuel demand hit its highest level in at least 24 years in February this year resulting in boosting of industrial activity, Reuters reported. The data compiled by the Indian Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) suggests the highest oil demand in India since 1998.
As per the report, the consumption of fuel rose by more than 5 percent to 4.82 million barrels per day (18.5 million tonnes) in February 2023. This is India's 15th consecutive year-on-year rise in oil demand.
This high consumption comes from a combination of profitable refining from Russian crude imports, total utilisation for primary distillation across the country and robust domestic consumption.
Petrol sales rose 8.9 percent year-on-year to 2.8 million tonnes in February while diesel consumption climbed 7.5 percent to 6.98 million tonnes. Sales of bitumen, which is used for building roads, jumped 21.5 percent month-on-month. However, fuel oil use declined more than five percent in February.
“For 2023, the strongest demand growth rate is projected to be in jet fuel, followed by gasoline and then diesel/gas oil,” said Alan Gelder, VP Refining, Chemicals and Oil Markets at Wood Mackenzie.
-With inputs from Reuters
First Published: Mar 10, 2023 10:13 AM IST
