India’s consumption of diesel, or high speed diesel (HSD), declined by 7 per cent on a month-on-month (m-o-m) basis to 7.2 million tonnes (mt) in April, largely as high prices of the key transport fuel impacted demand. The prices of motor spirit, or petrol, also witnessed a decline of 3 per cent on a monthly basis to 2.8 mt on account of high prices of the key commodity.

The consumption of liquefied petroleum gas (LPG), or cooking gas, too declined 12 per cent during the month to 2.2 mt, which analysts attribute to the price increase. LPG prices were hiked by ₹50 per cylinder in March. Its consumption during the month had been largely driven by the domestic category.

Higher retail prices of petrol and diesel also had an impact on consumers, who used public transport more as prices crossed ₹100 per litre. On diesel as well, high prices impacted demand. For instance, in Delhi, petrol was selling at ₹105.41 per litre and diesel at ₹96.67 a litre in April, analysts said.

Also there was some panic buying by individual vehicle owners as well as fuel pump owners in the first half of March in anticipation of fuel price revision. Government revised fuel prices from March 22.

Fall in prices

Post the Excise duty cut on petrol by the Centre on May 21, fuel prices have come down.

The price of Brent Crude averaged $104.39 per barrel during April as against $118.81 a barrel in March and $64.70 during April 2021. The Indian basket crude price averaged at $102.97 per barrel last month as against $112.87 during March and $63.40 a barrel during April 2021.

Overall, the consumption of petroleum products with a volume of 18.7 mt reported a growth of 12.3 per cent compared to the volume of 16.6 mt during the same period of the previous year. Natural Gas consumption (including internal consumption) stood at 5218 MSCM in April 2022, which was 3.9 per cent lower than the corresponding month of the previous year.

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