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India is the third-largest importer and consumer of oil worldwide and in the upcoming fiscal starting on April 1, India’s gasoline demand is predicted to increase by 4.7%. According to government projections, fuel consumption, a proxy for oil demand, could increase to 233.8 million tonnes in 2023–24 from the revised estimate of 222.9 million tonnes for the current fiscal year ending in March. According to preliminary industry figures released recently, India’s fuel demand has experienced the fastest recovery in February as double-digit increases in gasoline and diesel consumption followed a winter slump in the preceding month. In comparison to the same period last year, when 1.04 million tonnes were consumed, gasoline sales increased by over 18% to reach 1.22 million tonnes in the first half of February. Sales were 15.7% higher as compared to the same time period in 2020 and 18.3% higher than in the Covid-affected first half of February 2021. Demand increased by 13.6% month over month, reversing the decline from the prior month. Sales have decreased by 5.1% month over month in January as a result of poor driving conditions. This data was published by the Petroleum Planning and Analysis Cell (PPAC) which is also a division of the federal oil ministry.

Fuels that are on demand

According to the data, domestic demand for gasoline, which is primarily used in passenger cars, is anticipated to increase by 7.1% to reach 37.8 million tons, while gasoil consumption was projected to increase by roughly 4.2% to reach 90.6 million tons. Consumption of aviation fuel would likely increase by 14% to reach 8.6 million tonnes, compared with the revised estimate of 7.4 million tons for the year ending March 2023. Demand for pet coke, a better-burning alternative to coal, could increase by 5.8% to reach 19 million tons while demand for liquefied petroleum gas, used as cooking fuel, is estimated to grow by 1.7% to reach 29.1 million tons. Diesel, the most common fuel in the nation, saw a nearly 25% increase in sales from February 1 through 15, reaching 3.33 million tons, compared to the same time of the previous year. Consumption was 7% higher than in 2020 and 16.7% higher than in the first half of February 2021. Sales increased monthly by 10.3% from 3.01 million tons in the first half of January. While higher elevation snowfall stopped truck traffic in January, fuel use decreased by 8.6% month over month.

India’s airport passenger traffic increased slightly as a result of the aviation industry’s full-fledged work. Jet fuel (ATF) demand increased by 43.7% to reach 2,94,000 tons during the first half of February compared to the same period last year, reflecting the general trend. It was 12.8% lower than February 2020 but 35.6% greater than February 2021. Sales increased by 4.22% month over month.

According to sources, although domestic air travel has returned to its pre-Covid levels, international aviation traffic is still suffering as a result of ongoing restrictions in some nations. The recovery in India has accelerated recently, although this has been accompanied by high inflation.

Ever since the Covid-19 restrictions were relaxed, the nation’s oil demand has been continuously increasing. Sales of cooking gas LPG increased by 4.1% year over year to reach 1.39 million tonnes between February 1 and 15. The amount of LPG consumed in February was 14.7% more than in February 2021 and 20.9% higher than in 

February 2020.