Search
Close this search box.
India’s February Fuel Demand Hits at Least 24 Year High
india-s-fuel-demand in February
– By Jerome Onoja Okojokwu-Idu

       Share 

Facebook
Twitter
LinkedIn
WhatsApp

India’s February Fuel Demand Hits at Least 24 Year High

India’s fuel demand hit its highest level in at least 24 years in February, as indicated in recent data, with industrial activity in Asia’s third biggest economy boosted by cheap Russian oil.

Consumption of fuel, a proxy for oil demand, rose by more than 5% to 4.82 million barrels per day (18.5 million tonnes) in February, its 15th consecutive year-on-year rise, data showed.

Related Posts

Demand was the highest recorded in data compiled by the Indian Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) going back to 1998.

The strength highlights a combination of profitable refining from record Russian crude imports in February, total utilisation for primary distillation across India and still-robust domestic consumption, said Viktor Katona, lead crude analyst at Kpler.

Viktor Katona Lead Crude Analyst at Kpler.
Viktor Katona, Lead Crude Analyst at Kpler.

Katona forecasts demand in March at 5.17 million barrels per day (bpd) and then the seasonal monsoon-driven slowdown will lead to it to drop to 5 million bpd in April-May.

Sales of gasoline, or petrol, rose 8.9% year-on-year to 2.8 million tonnes in February, while diesel consumption climbed 7.5% to 6.98 million tonnes.

Sales of jet fuel jumped more than 43% to 0.62 million tonnes, the data showed.

“For 2023, the strongest demand growth rate is projected to be in jet fuel, followed by gasoline and then diesel/gas oil,” said Alan Gelder, VP Refining, Chemicals and Oil Markets at Wood Mackenzie.

While fuel sales data showed total volumes of both gasoline (motor spirit) and diesel (HSD) fell in February relative to January, they grew strongly on a daily consumption basis as February is a short month, Gelder noted.

Cooking gas, or liquefied petroleum gas (LPG), sales slipped by 0.1% to 2.39 million tonnes.

Sales of bitumen, which is used for building roads, jumped 21.5% month-on-month, while fuel oil use declined slightly more than 5% in February, compared with January.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Newsletter

Get to read our latest stories right in your email

Show some Love. Share this post

Copyright 2022. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from Majorwaves Energy Report

Show Buttons
Hide Buttons