India's fuel demand experienced a 2.8% decline in August compared to the same month last year, according to data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry. Consumption of fuel, serving as a proxy for oil demand, totalled 18.61 million metric tons during the month. Despite this overall decline, the data reveals mixed trends across different fuel categories, with some showing significant growth while others experienced substantial decreases.
Sales of gasoline, or petrol, were 8.2% higher from a year earlier, reaching 3.84 million metric tons in August. Similarly, diesel consumption was up 6.8% and totaled 7.02 million metric tons during the same period. These increases in petrol and diesel sales helped partially offset the overall decline in total fuel consumption, indicating continued demand for transportation fuels despite the broader market challenges.
Cooking gas or liquefied petroleum gas (LPG) sales decreased 17.2% to 2.35 million metric tons in August, representing a significant decline in domestic energy consumption. Additionally, naphtha sales fell 22.3% to 0.83 million metric tons, indicating reduced industrial and commercial demand for this petroleum product. These declines in LPG and naphtha consumption were the primary drivers behind the overall decrease in total fuel demand during the month.
Sales of bitumen, used for making roads, were 19.8% up, showing strong growth in infrastructure development activities. Fuel oil use edged up 4.8% in August, indicating continued demand for power generation and industrial applications. These positive trends in bitumen and fuel oil consumption helped partially offset the declines in other fuel categories, though they were insufficient to prevent the overall decrease in total fuel demand during the month.
