India’s Petroleum Consumption Hits Record High in FY 2023-24

New Delhi: India’s consumption of petroleum products soared to unprecedented levels in the financial year ending March 31, 2024, reaching a record high of 233.276 million tons, according to data compiled by the Ministry of Petroleum and Natural Gas.

The surge represents a notable 5 per cent increase from the previous fiscal year, where consumption stood at 223.021 million tons, underscoring the country’s growing appetite for petroleum products.

Among the key contributors to this surge in demand, sales of diesel witnessed a significant uptick, rising by 4.4 per cent compared to the previous year. Diesel, widely used in transportation, agriculture, and industrial sectors, saw heightened demand amidst increased economic activity across the nation.

Similarly, the consumption of petrol experienced a notable uptrend, recording a 6.4 per cent increase during the fiscal year. The rise in petrol consumption can be attributed to the growing sales of cars and two-wheelers, reflecting a buoyant automotive market in India.

Another noteworthy contributor to the surge in petroleum consumption was the increased demand for bitumen, a vital component in road construction. Sales of bitumen surged by 9.9 per cent as the government embarked on ambitious infrastructure projects to bolster economic growth.

Additionally, the demand for naphtha, used in the production of fertilizers, also witnessed robust growth during the fiscal year.

However, despite the overall growth in petroleum consumption for the fiscal year, the month of March saw a slight dip in consumption, with total petroleum product consumption totaling 21.09 million metric tons. This figure was marginally lower than the 21.22 million tons consumed in the previous year.