India’s fuel demand surged to a nine-month high in December to 19.60 million tonnes, according to data released on Monday by the Petroleum Planning and Analysis Cell (PPAC) under the oil ministry. Fuel consumption rose to 3.1 per cent in December 2022 compared to December 2021. While fuel consumption in December was about 4 per cent higher compared to November 2022.
The news agency Reuters reported that this uptick in demand is led by strong industrial activity and a rise in consumption due to higher passenger vehicle sales. Reuters quoted UBS analyst Giovanni Staunovo saying, “demand in India, the third largest consumer, was growing the fastest among major economies in 2022. Solid economic growth should see Indian demand expanding also at a solid pace this year.”
According to PPAC data, Diesel (HSD) sales rose by 6.5 per cent in December to 7.78 million tonnes compared to a year earlier, while sales of petrol, rose 5.9 per cent to 2.98 million tonnes.
Productwise consumption data is out of PPAC website; https://t.co/DvkDFoLLNk pic.twitter.com/egx2P6rbhX
— Petroleum Planning & Analysis Cell, MoPNG, GoI (@PPACIndia) January 9, 2023
LPG) sales increased by 3.9 per cent in December to 2.58 million tonnes, while naphtha sales rose by 0.5 per cent to 1.11 million tonnes. Sales of bitumen, used for making roads, fell 15.1 per cent, while fuel oil use jumped 9.3 per cent in December, according to PPAC data.
Reuters cited a business survey saying that India’s manufacturing industry ended 2022 on a solid footing as business conditions improved at the fastest rate in over two years while growth in new orders and output accelerated.
According to the Federation of Automobile Dealers Associations (FADA), passenger vehicle (PV) sales for the month rose around 8.2 per cent to 280,016 units and reached an all-time high of over 3.43 million units in 2022. FADA in a press release dated January 9 said, “the PV segment has continued to show remarkable consistency in growth during the entire year. While supply woes has decreased, better product spread and ever highest consumer offers have kept consumer interest on.”
“India’s car sales are now the third largest light vehicle market in the world. This means that demand will continue to increase in the next few years as the middle class continues to buy cars,” Refinitiv analyst Ehsan Ul Haq told Reuters.