Fuelin’ Hot! India’s May Demand Just Broke the Meter

Image Source: ET EnergyWorld

Record-Breaking Demand Across Fuel Categories

India's fuel demand rose to 21.32 million metric tons in May, a record high in more than a year.

Petrol sales rose 9.6% month-to-month to 3.78 million tons, due to heightened travel demand.

Diesel consumption rose 4% from April at 8.59 million tons, and LPG sales rose 10.4% yearly to 2.66 million tons.

Factors Driving the Demand Spike

Petrol demand increased with increased summer mobility, up 9.2% from a year ago.

Diesel demand experienced moderate increases, backed by irrigation requirements for farming and air-conditioning in urban areas.

LPG demand was aided by growth in Ujjwala scheme connections, increasing household usage.

Sectoral Trends & Economic Indicators

Aviation fuel (ATF) grew 4.3%, indicating robust mobility patterns.

Naphtha off-take dropped 8.3%, showing weakness in the petrochemical industry.

India's private sector activity rose at its highest rate in more than a year, adding to fuel demand growth.

Looking Ahead: Market Implications

Experts anticipate on-going fuel demand growth, stimulated by economic development and infrastructure initiatives.

The government is keeping an eye on international oil price movements, which will affect domestic fuel prices.

Industry analysts project diesel demand stabilization, with petrol and LPG demand staying strong.

Sources: Hellenic Shipping News, Economic Times, Reuters.