Indian Economy News

India's June fuel demand edges up 2.6%

In June 2024, India's fuel consumption surged by 2.6% YoY to reach 19.99 million metric tons, affirming its pivotal role as one of the world's largest oil importers and consumers. Data from the oil ministry's Petroleum Planning and Analysis Cell underscores India's economic resilience despite fluctuations in monthly demand patterns.

Vice President and Co-head of Corporate Ratings at India Credit Rating Agency (ICRA), Mr. Prashant Vasisht, linked fuel usage to robust economic growth and increased tourism activity compared to the previous year. He highlighted improvements in jet fuel consumption and stable power supplies supporting the agricultural sector, reducing dependence on diesel.

Although total fuel consumption surpassed 19.48 million tons compared to the previous year, it represented a 3.5% decline from May. Diesel sales dropped by 5% MoM to 7.98 million tons but showed a 1% increase YoY. Gasoline sales grew by 4.6% annually to 3.30 million tons but decreased by 4.8% from May levels. Bitumen demand expanded by over 4%, while cooking gas and naphtha sales rose by 3.2% and 1.4%, respectively, compared to June last year. Fuel oil consumption also saw a significant uptick of nearly 5% YoY.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.