Petrol Diesel Demand Raises: From 22 March, the government oil companies started increasing the prices of petrol and diesel. Despite this, the demand for petrol and diesel has reached the highest level of 3 years in March 2022. According to government data, the consumption of petrol and diesel has been 4.2 percent more in March, which is more than the period before the corona epidemic.
Highest consumption in 3 years
According to the data released by the Petroleum Planning and Analysis Cell, which comes under the Ministry of Petroleum, the total consumption of petroleum products in the month of March has been 19.41 million tonnes, which is more than March 2019. The economy is recovering after the third wave of the Corona epidemic, economic growth has been gaining momentum, the lockdown is completely over, so the demand for petrol and diesel has increased in the month of March. Improvement is being seen, economic recovery is being seen.
Diesel consumption increased in March due to hoarding
Among all petroleum products, the most widely used fuel in the country is diesel, which accounts for about 40 per cent of its consumption. Diesel consumption grew by 6.7 percent to 7.7 million tonnes in March 2022. At the same time, the consumption of petrol stood at 2.91 million tonnes, which is 6.1 percent more. The consumption of petrol and diesel is increasing even more than before the corona epidemic. The main reason for the increase in diesel consumption in the month of March is the stock of diesel deposited by consumers and petrol pumps apart from agriculture sector. After the end of the assembly elections in five states, people started hoarding diesel due to the fear of increasing the price. The demand for LPG has increased by 9.8 percent. LPG consumption has increased by 9.8 per cent to 2.48 million tonnes in March 2022.
Consumption increased due to recovery of economy
Fuel demand grew by 4.3 per cent to 202.71 million tonnes in the financial year ending March 31, 2022, the highest since FY20. Auto and cooking fuel consumption has increased while industrial fuel consumption has decreased. Petrol consumption grew by 10.3 per cent to 30.85 million tonnes in 2021-22, while diesel sales grew by 5.4 per cent to 76.7 million tonnes.
Petrol demand was the highest ever in the financial year 2021-22 while diesel sales were the highest since the consumption of 82.6 million tonnes in 2019-20. LPG consumption increased by 3 per cent to 28.33 million tonnes. Demand for jet fuel ie ATF increased by 35 percent to 5 million tonnes, but in the year before the corona epidemic, consumption was less than 8 million tonnes. The main reason for which is that from March 27, 2022, the government has given permission to start regular international flight service.