Consumption of petrol in India increased by 9.3% in January compared to the same period last year. Additionally, sales of diesel rose by 3.1% after a slow December. The growth in fuel sales can be attributed to people returning from their holiday breaks and an overall increase in economic activity. According to the sales data from the Petroleum Planning and Analysis Cell of the oil ministry, petrol and diesel sales have shown a 6.1% and 4.3% growth respectively from April to January. State refiners sold 8% more petrol and 1.8% less diesel in January compared to the previous year, indicating market share gains for the private sector. Private players have been recovering the fuel market share they lost during the previous financial year. Jet fuel sales also saw a 6.2% rise in January compared to the previous year, with a total growth of 11.8% for the fiscal year so far. However, state-run companies experienced only 1.7% sales growth in January. Cooking gas consumption expanded by 6.9% in January and 2.8% between April and January. The cooking gas supply in India is controlled primarily by state-run companies.

Petrol sales account for 15% of the total refined products demand in the country, while diesel makes up 38%. In December, diesel sales had fallen by 2.5% compared to the previous year, while petrol sales remained nearly unchanged. Demand for petrol is heavily dependent on mobility, with two-wheelers accounting for nearly 60% of total petrol sales in India. Monthly new vehicle sales also contribute to the growth of petrol sales. Several factors affected the sales of petrol and diesel in December, including a cyclone, a truckers’ strike, and expectations of a price drop. Diesel is mainly used for long-haul transport, mining, farming, and backup generators. The sales of new commercial vehicles also contribute to diesel demand. Diesel sales tend to taper off in winter after a strong showing during the festive season. Diesel demand is affected by the harvest season and rains, with sales boosted during the former and slowed during the latter. The increased adoption of solar pumps and solar lighting has been gradually reducing the overall demand for diesel in India.