Economy

Consumption of motor spirit, diesel up sequentially in June

Our Bureau New Delhi | Updated on July 26, 2021

In May consumptionstood at 1,991 metric tonnes

The consumption of motor spirit (MS) increased in June 2021 sequentially at 2,409 metric tonnes, as per the data of Petroleum Planning and Analysis Cell of the Petroleum Ministry.

In May it stood at 1,991 metric tonnes. Meanwhile, on a year-on-year basis also, a rise in consumption was noted in June 2021 when compared to 2,281metric tonnes in June last year.

Also, the consumption of diesel rose to 6,203 metric tonnes in June 2021 from 5,538 tonnes in May 2021. However, a marginal decline was noticed when compared on a year-on-year basis at 6,299 metric tonnes in June 2020.

Total consumption

In the first quarter this fiscal, total motor spirit consumption stood at 6786 metric tonnes, while diesel consumption stood at 18,424 tonnes. Cumulatively, the consumption of petrol and diesel in the June 2021 quarter stood at 25,210 tonnes.

It may be recalled that the country imposed nationwide lockdown on March 25, 2020, and the consumption of petrol and diesel dropped to 20,068 TMT during April-June 2020, which was approximately 34 per cent less than the consumption of the same period in 2019 at 30,399 TMT, according to the government .

“As the lockdown was progressively lifted and economic activities resumed, the consumption of petrol and diesel gradually increased, reaching 28,410 TMT during January-March 2021, which was approximately 106 per cent of the consumption during the same period in 2019. Further, the consumption dropped with the restrictions imposed during the second wave of Covid in April- May 2021, only to pick up again,” said Petroleum Minister Hardeep Singh Puri in a written reply in Lok Sabha. He further added that by July 21, MS sales were 118.65 per cent of the sales in the same time period in 2020, whereas it was 111.90 per cent of the July 2020 sales for high-speed diesel.

On the prices of petrol and diesel, the Minister said in the written reply that they have been market-determined with effect from June 26, 2010, and October 10, 2014, respectively. Since then Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on pricing of petrol and diesel on the basis of international product prices and other market conditions. OMCs have increased and decreased prices of petrol and diesel according to changes in international prices and rupee-dollar exchange rate, he added.

Published on July 26, 2021

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