Fuel demand likely to grow 2.7% in India

India’s fuel consumption is expected to rise 2.7% in the next fiscal year beginning on April 1, initial government estimates showed.

Fuel consumption in 2024-25, a proxy for oil demand, could rise to 238.954 million tonnes from the revised estimate of 232.561 million tonnes for the current fiscal year, according to data from the website of the Petroleum Planning and Analysis Cell (PPAC). PPAC is a unit of India’s federal oil ministry.

Domestic demand for gasoline, used mainly in passenger vehicles, is expected to rise by 5.4% to 39.2 million tonnes, while diesel consumption is expected to increase by 2.7% to 92.4 million tonnes, the data showed.

Consumption of aviation fuel is also likely increase by more than 8% to 9 million tonnes, compared with the estimate of 8.3 million tonnes for the fiscal year ending March 2024.

Consumption of bitumen, used for making roads, is likely to rise by 3.4%, while naphtha demand is expected to drop by 7.4%.

Demand for petcoke, a better-burning alternative to coal, could increase 4.1% to 20.1 million tonnes, while demand for liquefied petroleum gas, used as cooking fuel in the country, is estimated to grow by 2.4% to 30 million tonnes, PPAC data showed.