India’s consumption of petroleum products increased by 6.1% in January, 2023 to 18.70 million tonnes (mnt) compared to 17.62 mnt in the same month last year.
Fig in mntSource: 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 was observed in aviation turbine fuel (ATF) at 46.3% followed by motor spirit at 14.2%.
The consumption of furnace oil (FO) and low-sulphur heavy stock (LSHS) increased by 9% y-o-y in January. Furnace oil is used for electricity generation.
Consumption in Apr’22-Jan’23
Total consumption of petroleum products in April-January 2023 increased to 183.57 mnt as against 165.72 mnt in the same period last year, up 10.8% y-o-y.
Notably, the top five products consumed during the period in descending order are high speed diesel (HSD), motor spirit (MS), liquified petroleum gas (LPG), pet coke and naphtha. These five products contributed approximately 80% of total consumption of petroleum products.
HSD is used as transportation fuel in various sectors such as railways, buses, industries, mining, etc. Motor spirit (petrol) is used in private transportation like car, two-wheelers, etc. and LPG is used mainly in domestic cooking and also some industrial applications.
ATF, which is used as fuel by most aircraft,, recorded the highest growth of 50.2% in the April-January period. Consumption has consistently increased due to the relaxation in airlines restrictions for both domestic and international destinations after Covid-19. Consumption is expected to further increase in the short term.
Fig in mntSource: Govt data, updated
The maximum negative growth was observed in superior kerosene oil followed by light diesel oil. The consumption of naphtha fell by 10.3% for the period under review.
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