New Delhi, September 2: In August, India witnessed a significant increase in petrol and diesel consumption compared to the same month last year. This rise reflects heightened economic activities across the country, according to data from the Ministry of Petroleum and Natural Gas.
Diesel, the most consumed petroleum product in India, is primarily used in transportation and agriculture. Its consumption rose from 6.58 million tons in August last year to 7.00 million tons this year, marking an increase of 6.46 percent.
The rapid expansion of the country’s highway network has improved connectivity and facilitated the movement of goods nationwide, contributing to the rise in diesel consumption. Additionally, an increase in the number of tractors has led to higher fuel usage. This August, farmers relied more on diesel-powered water pumps for irrigation due to a weak monsoon, further boosting consumption.
Petrol consumption also saw a year-on-year increase of 7.88 percent, reaching 3.82 million tons in August, up from 3.54 million tons in the same month last year. The growing economy has spurred sales of cars and two-wheelers in urban, suburban, and rural areas, driving up petrol sales.
Government data also reveals a significant decline in the consumption of liquefied petroleum gas (LPG) during August. LPG usage fell by 16.15 percent year-on-year, dropping to 2.42 million tons from 2.89 million tons last August. Conflicts in West Asia have disrupted the Strait of Hormuz, a crucial route for 20 percent of the world’s oil and gas exports, affecting LPG imports from that region.
Typically, India imports over 50 percent of its LPG through this route, but now it has been compelled to source fuel from more distant countries. The government has encouraged consumers to switch from LPG to piped natural gas (PNG) for cooking and has initiated incentives for city gas distributors to expand domestic PNG connections to address the crisis.
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