According to official figures, India, the third-largest oil user in the world, saw an 8.2% annual increase in fuel consumption in January. This increase was attributed to robust industrial activity. Relative to oil demand, total consumption increased to 20.04 million tonnes in January from 18.51 million tonnes the previous year, according to data from the energy ministry’s Petroleum Planning and Analysis Cell (PPAC).
Month over month, consumption remained largely stable after reaching a seven-month high of 20.05 million tonnes in December. India’s economy is still robust; thus demand is growing there. This is because more people are purchasing new 2024 models, car sales are also increasing.The beginning of 2024 saw a significant improvement in India’s manufacturing sector, with factory activity growing at its quickest rate in four months in January and automakers reporting record sales for the previous month.
India is anticipated to overtake top importer China as the main driver of the expansion in the world’s oil demand between 2023 and 2030, according to the International Energy Agency. In January, sales of gasoline grew 9.6% to 3.10 million tons, while sales of diesel, which is primarily used by trucks and commercial passenger cars, increased 3.5% to 7.43 million tons. In January of last year, sales of bitumen, which is used to build roads, increased by 11.6%, while the use of fuel oil fell by 4.7% annually. Sales of liquefied petroleum gas, or cooking gas, increased 7.6% to 2.70 million tons, while sales of naphtha increased 15.2% to almost 1.30 million tons.