Indian Economy News

India's March fuel demand soars on robust economic activity

  • IBEF
  • April 12, 2023

As per some data, the fuel consumption in India jumped to a high record in March, which was mostly fuelled by robust economic activity in the country, which is the world’s third-biggest oil consumer.

Fuel consumption, a proxy for oil demand, increased by 5% from a year earlier to 4.83 million barrels per day (20.5 million tonnes), the highest level ever recorded according to data from the Petroleum Planning and Analysis Cell of the Indian Oil Ministry, dating back to 1998.

As per an Analyst at Kpler, bitumen, which is used for building roads, was the main driver of growth in March.

In comparison to February, bitumen sales increased by 16.5%, jet fuel sales by more than 10.4% to 0.69 million tonnes, and diesel sales by 11.4% to 7.80 million tonnes. On an annual basis, sales of gasoline, or petrol, rose 6.8% to 3.1 million tonnes in March.

Another Analyst mentioned government's increased capital expenditure allocation as another reason for the overall jump in consumption. Additionally, she said that the increased oil exports to Europe and a travel revival boosting jet fuel demand could be additional drivers.

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