India’s petroleum products consumption increased by 7.2% in December, 2022 to 19.60 million tonnes (mnt) compared to 18.29 mnt in the same month last year.
Fig in mnt
Source: Govt data, updated
The total consumption of all petroleum products includes domestic sales by all oil companies, direct imports and sales by Special Economic Zone (SEZ) units in DTA.
Amongst the major products, the maximum growth is observed in pet coke by 24% in December over the same month last year, followed by Aviation Turbine Fuel (ATF) at 19.4%.
The consumption of furnace oil (FO) and low sulphur heavy stock (LSHS) increased by 14.7% y-o-y in December. Furnace oil is used for electricity generation.
Petroleum products consumption in Apr-Dec’22
On a cumulative basis, petroleum products consumption in April-December 2022 increased to 164.87 mnt as against 148.11 mnt in the same period last year, registering a 11.3% growth y-o-y.
Notably, the top five products by consumption during the period in descending orders are high speed diesel (HSD), motor spirit (MS), liquified petroleum gas (LPG), pet coke and naphtha. These five products have contributed approximately 80% of total petroleum products consumption.
HSD is used as transportation fuel in various sectors like railways, buses, industries, mining etc. Motor Spirit (Petrol) is used in private transportation like car, two wheelers etc and LPG is used mainly as domestic cooking and also in some industrial applications.
ATF which is used as fuel by most of the aircrafts, recorded the highest growth of 50.7% in the April-December period. The consumption has consistently increased due to the relaxation in airlines restrictions for both domestic and international destinations after Covid-19. The consumption is expected to further increase in the near future.
Fig in mnt
Source: Govt data, updated
The maximum negative growth was observed in superior kerosene oil followed by light diesel oil. The consumption of naphtha fell by 11% for the period under review.
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