Fuelled by unlock, petrol offtake up 3%

Petrol consumption is up 3 per cent in September 2020, compared to September 2019, according to data shared by the Petroleum Planning and Analysis Cell. This reflects more movement of small cars and passenger vehicles.

It is also a significant variation because it is the first time in the current fiscal that petrol consumption has outpaced the same month last year. This fall was on account of Covid-induced lockdowns and the recovery coincides with the opening up of the economy.

But diesel consumption in September 2020 remained 6 per cent below September 2019 levels. This means lesser movement of trucks and commercial activities compared with the same month a year ago.

On a cumulative basis, the gap between diesel consumption during fiscal 2020-21 and 2019-20 stood at 10.46 million tonnes. On a monthly basis, this gap has narrowed as the country moves towards unlocking business activities. Diesel consumption was down 21 per cent in August 2020 compared to August 2019.

Domestic refiners

For oil marketing companies, the fall in diesel consumption and spurt in petrol consumption means an augmentation of refining and sourcing capacity. Since diesel consumption significantly outpaces petrol, India’s domestic refineries are tuned to producing more diesel. But with diesel consumption sustaining lower, Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) are said to be importing petrol to meet the spurt in demand.

Aviation Turbine Fuel (ATF) consumption remained significantly lower in September 2020, at 52 per cent less than September 2019.

Gas consumption

Liquified Petroleum Gas (LPG or cooking gas) consumption has resumed its upward trend with a 5 per cent jump during September 2020 over September 2019. This reverses the 5 per cent dip in LPG consumption during August 2020 compared to August 2019.