Fuel Demand on the Rise in India in February

The Indian economy is showing signs of recovery with fuel demand rising across the country. Sales of diesel, jet fuel (ATF) and cooking gas (LPG) have increased significantly over the past few months, indicating a revival in the sector.

Diesel Demand

Diesel consumption in India rose 25% during February 1-15 compared to the same period last year. The rebound in sales was the sharpest, with trucks returning to roads and an uptick in the agriculture sector. Month-on-month sales surged 10.3% from 3.01 million tonnes in the first half of January.

Jet Fuel (ATF)

Demand for jet fuel (ATF) jumped 43.7% to 2,94,000 tonnes during the first half of February when compared to the same period last year. This reflects the continued opening of the aviation sector, with passenger traffic at airports edging closer to pre-COVID-19 levels. International traffic is lagging due to continued restrictions in some countries.

Cooking Gas (LPG)

Sales of cooking gas (LPG) were up 4.1% year-on-year at 1.39 million tonnes in February 1-15. Consumption was 14.7% higher than in February 2021 and 20.9% more than in February 2020. Month-on-month, the demand was up nearly 12% when compared to 1.24 million tonnes of LPG consumption during January 1-15.

Conclusion

The rise in fuel demand in India is a positive sign for the economy, indicating that the country is slowly recovering from the impact of the pandemic. The government should continue to focus on reviving the economy by encouraging people to travel and boosting the aviation sector.

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