Fuel demand highest in 11 months as economy recovers

New Delhi : India's fuel demand in the month of December stood all-time high in last 11 months as the economy has started to recover after lockdowns have been eased in almost all parts of the nation.

Consumption of fuel, rose 4.1% to 18.6 million tonnes in December, the highest since January 2020, data from the Petroleum Planning and Analysis Cell (PPAC) of the ministry of petroleum & natural gas showed on Friday.

However, the total consumption of fuel on annual scale declined by 1.8%, which means the current demand is yet to reach the pre-pandemic level.

Diesel consumption, a key parameter linked to economic growth and which accounts for about 40% of overall refined fuel sales in India, rose 1.9% to 7.18 million tonnes from the previous month, while declining by 2.8% year-on-year.

Gasoline, or petrol, sales rose 1.5% from November to 2.7 million tonnes and by an annual 9.3%.

Meanwhile, cooking gas demand has rose by nothing less than 7 per cent on both monthly and annual basis.