Has India's Fuel Demand Increased by 1.94% to Over 20.3 Million Tonnes in June?

New Delhi, July 7 (NationPress) The demand for petroleum products in India, including petrol, diesel, and LPG, experienced a rise of 1.9%, reaching 20.31 million metric tonnes in June, up from 19.94 million tonnes in the same month last year, according to data released by the Ministry of Petroleum and Natural Gas on Monday.

The sales of petrol surged by 6.7% in June compared to the previous year, driven by an increase in the sales of cars and two-wheelers, alongside a rebound in rural demand supported by a stronger performance in the agriculture sector.

In contrast, diesel, the most commonly consumed fuel in the country utilized in both the agriculture and transport sectors, saw a 1.6% rise, totaling 8.11 million metric tons in June this year compared to the same month in the prior year. This uptick in diesel consumption, which accounts for nearly 40% of total fuel sales, indicates heightened economic activity across both farming and logistics sectors.

Moreover, sales of Liquefied Petroleum Gas (LPG) skyrocketed by a remarkable 9.1% to 2.53 million metric tons in June, compared to the same month last year, as an increasing number of households transitioned to cooking gas amid rising income levels, aided by the government’s Ujjwala scheme, which makes this fuel accessible to underprivileged families. Additionally, commercial use of LPG in hotels and restaurants has risen significantly.

There was also a 2% increase in naphtha sales, which are essential for fertilizer production, amounting to 1.03 million metric tons during the month.

However, on a month-to-month basis, sales of petroleum products dropped by 4.7% compared to the previous month, primarily due to the early arrival of the monsoon in June.

India stands as the third-largest consumer and importer of oil globally. These figures serve as a significant indicator of the country's oil demand.

In related news, Minister of Petroleum and Natural Gas Hardeep Singh Puri reassured the public last month about the stability of oil supplies to Indian consumers amidst escalating geopolitical tensions stemming from the Israel-Iran conflict and US military actions targeting Iran's nuclear facilities.

"We have been vigilantly observing the evolving geopolitical landscape in the Middle East over the past two weeks. Thanks to the leadership of Prime Minister Narendra Modi, we have diversified our supply sources over recent years, and a substantial portion of our supplies no longer transit through the Strait of Hormuz," the minister stated.

He emphasized that the country's oil marketing corporations, namely Indian Oil, Bharat Petroleum, and Hindustan Petroleum, are well-stocked with supplies for several weeks and continue to receive energy from various channels.

India has fortified its oil supply channels by increasing imports from Russia and the US, while also enhancing its resilience through strategic reserves stored in underground facilities along the coast.