India, the world's third-largest oil importer and consumer, saw its fuel consumption rise by a robust 6.1 per cent year-on-year in April, Reuters reported on Tuesday, citing data from the Petroleum Planning and Analysis Cell (PPAC). This increase is attributed to heightened economic activity, particularly in the lead-up to recent elections across the country, said Prashant Vasisht, vice president, corporate ratings, ICRA. Looking ahead, Vasisht expects Indian fuel demand to continue growing alongside the country's projected GDP growth of 3-4 per cent. He anticipates that the bulk of this rise will be driven by petrol and diesel demand, further fueled by a thriving Indian air travel sector. The PPAC data reveals that total fuel consumption reached 19.86 million metric tons (4.85 million barrels per day) in April, up from 18.71 million tons in the same month last year. While this reflects significant annual growth, it represents a 5.8 per cent decrease compared to March 2024's consumption of 21.09 million metric tons. Diesel sales, primarily used by trucks and commercial vehicles, saw a modest year-on-year increase of 1.4 per cent to 7.93 million tons in April. However, gasoline demand experienced a more significant jump of 14 per cent compared to the previous year, reaching 3.28 million tons. The data also revealed a decrease in demand for some fuels. Bitumen, used in road construction, saw a decline of over five per cent year-on-year. While liquefied petroleum gas sales rose by nearly 10 per cent to 2.36 million tons, and naphtha sales gained 3.9 per cent to 1.16 million tons, fuel oil usage dropped by more than 16 per cent compared to April 2023. As Asia's third-largest economy, India boasts the fastest growth among major peers, with its GDP projected to expand by 6.5 per cent this fiscal year. A recent business survey also indicated continued robustness in the manufacturing sector, with strong demand prompting firms to ramp up raw material purchases.
