The country’s fuel consumption increased in March 2021, for the first time in three months, to its highest figure recorded since December 2019. The petrol sales last month registered a growth of 27.4 per cent year-on-year, while diesel consumption also went up 27.6 per cent year-on-year. This was a result of the economy that picked up gradually after the COVID-19 induced lockdown. The sale or consumption of fuel is a proxy for the oil demand. According to data from the Ministry of Petroleum and Natural Gas, fuel consumption increased 17.9 per cent to 18.8 million tonnes year-on-year in March 2021.
Petrol sales (demand) increased 11.4 per cent to 2.74 million tonnes last month and around 27 per cent on year-on-year basis. The consumption of diesel, which is considered to be a major parameter of economic growth, accounting for around 40 per cent overall refined fuel sales in the country, increased 10 per cent last month. Diesel sales increased 27.6 per cent on year-on-year basis.
Cooking gas or liquified petroleum gas (LPG) registered a decrease in sales. Sales of cooking gas were 1.3 per cent lower than last year at 2.26 million tonnes.