According to preliminary figures released by state-owned companies on Monday, India’s demand and gasoline and diesel sales fell in December due to the onset of winter. Continue reading to learn more.
Stats In Comparison To Last Year
In comparison to the same period last year, the three state-owned companies that control 90% of the fuel market saw a 1.4% decline in gasoline sales to 2.72 million tonnes in December 2023, while demand for diesel plummeted 7.8% to 6.73 million tonnes.
The beginning of winter in northern India and the decline in demand for air conditioning are cited as the causes of the decrease in fuel demand. Gasoline sales are down 4.9% monthly from the 2.86 million tons consumed in November. In addition, the demand for diesel decreased by 0.8% month over month from 6.79 million tons in November.
Demand For Gasoline And Diesel
In India, diesel fuel is the most widely used fuel, accounting for over 40% of all petroleum product usage. Seventy percent of diesel sales in the nation are attributed to the transportation industry. The past several months have seen a swing in fuel consumption. While demand for gasoline and diesel increased in October, the subsequent month saw a 7.5% decline in the use of diesel.
In December 2023, gasoline consumption was 7.1% higher than in December 2021, when COVID-19 was prevalent, and 21.5% higher than in December 2019 before the pandemic.
ATF Demand
Sales of jet fuel (ATF) increased 3.8% year over year to 644,900 tons in December. But this was 6.5% less than in December 2019 because not all international flights had been restored during the pandemic.
ATF use was less than the 628,400 tonnes utilized in December 2019 before COVID-19, but it was still 25.5% higher than in December 2021. Sales of jet fuel increased month over month by 2.6% from 628,400 tons in November 2023.
Comparing LPG Demand
Sales of cooking gas LPG in December were 2.73 million tons, essentially unchanged from the previous year. The amount of LPG consumed was 8.1% more than in December 2021 and 16.4% more than in December 2019 before the COVID-19 pandemic.
According to the report, LPG demand increased 6.2% month over month in November, compared to 2.57 million tonnes of LPG use.
What do you think about this drop in demand? Do you think the prices will fall as well? Make sure to share your opinions with us in the comment section below. Your response is much-awaited!
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