India Sees Surge in Petrol, LPG, and Jet Fuel Consumption Amid Economic Growth
New Delhi – India’s consumption of petrol, aviation turbine fuel (ATF), and liquefied petroleum gas (LPG) experienced notable increases in October 2024 compared to the same month last year, indicating rising demand amid a growing economy.
Data released by public sector oil companies revealed that petrol sales rose by 7.3%, while LPG consumption surged by 7.5%. Jet fuel demand also saw a 2.5% increase year-on-year during the festive season. This growth aligns with the increased purchasing of cars, SUVs, and two-wheelers across urban and rural areas.
Specifically, petrol sales from major oil companies—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—rose to 3.1 million tonnes in October, up from 2.87 million tonnes in the same month last year. In contrast, diesel sales declined by 3.3%, primarily due to the prolonged monsoon season which affected agricultural activities and, subsequently, diesel demand in the farming sector.
The aviation sector also saw a boost, with jet fuel consumption reaching 647,700 tonnes in October. Domestic airlines reported flying 13 million passengers in September, marking a 6.38% increase compared to the previous year, driven by a growing middle class benefiting from economic advancements.
In terms of cooking gas, LPG sales increased to 2.82 million tonnes in October 2024, representing a 7.5% year-on-year rise and a 13.1% increase from October 2022. This growth is attributed to the successful rollout of the Pradhan Mantri Ujjwala Yojana (PMUY), which has provided over 10.33 crore deposit-free LPG connections to women from economically disadvantaged households as of August 2024. The initiative reached its initial target of 8 crore connections in September 2019, and a second phase was launched in August 2021 to further assist remaining poor households.
To address ongoing demand, the government approved the release of an additional 7.5 million PMUY connections in September 2023, which have been successfully distributed by July 2024. Efforts to promote LPG use over traditional fuels include awareness campaigns and safety training through LPG Panchayats.
As a result of these initiatives, the average per capita consumption for PMUY beneficiaries has improved to 3.95 refills in the fiscal year 2023-24, demonstrating the program’s impact on enhancing energy access for vulnerable communities.
