Is India's Diesel and Petrol Consumption Rising in April?
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Synopsis
India’s petroleum product consumption surged in April, reflecting an uptick in economic activity. Diesel, petrol, and LPG saw significant growth, driven by demand from various sectors. The reduction in fuel prices amidst falling crude oil costs offers further insights into the changing dynamics of the country's energy landscape.
Key Takeaways
- Diesel consumption reached 8.24 million tonnes in April.
- Petrol consumption increased by 4.6% to 3.44 million tonnes.
- LPG consumption grew by 6.7% thanks to the Ujjwala scheme.
- ATF consumption registered a 3.25% rise.
- Fuel prices have dropped amid declining crude oil costs.
New Delhi, May 4 (NationPress) The consumption of petroleum products like diesel, petrol, and LPG in India witnessed a notable increase in April of this year, signifying an upswing in the nation’s economic activity.
India’s diesel consumption climbed to 8.24 million tonnes in April, marking the second highest monthly consumption ever, driven by escalating demand from the agricultural and transport sectors. According to data from the Petroleum Planning & Analysis Cell (PPAC), this represents a 4% rise year-on-year, following a high base in April 2024 when diesel use had surged due to electoral campaigning for the Lok Sabha elections.
The substantial increase in diesel consumption, which makes up nearly 40% of total fuel sales, reflects robust economic activity in both the agriculture and logistics sectors. Additionally, this fuel is also utilized in the industrial and mining sectors, contributing to the growth.
In parallel, petrol consumption grew by 4.6% reaching 3.44 million tonnes in April. Last year, petrol consumption had soared by 19% amid vigorous campaigning by various political parties during the Lok Sabha elections. This growth is also supported by rising vehicle sales in a flourishing economy.
LPG consumption saw a significant rise of 6.7% during the month, totaling 2.62 million tonnes, largely due to the Ujjwala scheme which has made this fuel accessible to impoverished families. Furthermore, there has been an uptick in commercial LPG consumption in hotels and restaurants.
The figures reveal that the consumption of aviation turbine fuel (ATF) by commercial airlines reached 766,000 tonnes, representing a 3.25% increase compared to the same month last year.
In other news, public sector oil companies recently reduced the price of commercial LPG by Rs 14.50 per 19-kg cylinder, while jet fuel prices were cut by 4.4%. The price of ATF was lowered by approximately Rs 3,954.38 per kilolitre to Rs 85,486.80, providing relief for airlines such as Air India and IndiGo, where fuel constitutes around 30% of operational costs.
This price reduction aligns with the decline of crude oil prices to a four-year low in the global market, as the benchmark Brent crude hovers around $63 a barrel, the lowest level since April 2021.
Point of View
The rise in petroleum consumption indicates a positive trajectory for India's economy. As the nation continues to recover post-pandemic, the growth in diesel, petrol, and LPG consumption highlights the resilience and adaptability of various sectors, suggesting a potential for sustained economic momentum.
NationPress
21/09/2025
Frequently Asked Questions
What drove the increase in diesel consumption in April?
The increase in diesel consumption was primarily driven by heightened demand from the agricultural and transport sectors.
How does the current petrol consumption compare to last year?
Petrol consumption grew by 4.6% in April, following a substantial increase of 19% last year due to the Lok Sabha elections.
What impact has the Ujjwala scheme had on LPG consumption?
The Ujjwala scheme has significantly increased LPG accessibility for poor families, contributing to a 6.7% rise in consumption in April.
What was the change in aviation turbine fuel prices?
Aviation turbine fuel prices were reduced by approximately Rs 3,954.38 per kilolitre, benefiting airlines' operational costs.
How does the current crude oil price affect fuel prices in India?
The drop in global crude oil prices has facilitated reductions in fuel prices in India, providing relief to consumers and airlines.
