Economy

Petrol and diesel consumption fall in January as prices shot up

Our Bureau New Delhi | Updated on February 22, 2021

Prices of these three fuels have continued skyrocketing through February   -  SUDHAKARA JAIN

Bucks the trend of rising demand

The domestic consumption of diesel, petrol, and LPG declined in January, bucking the trend of rising demand that was being viewed as a sign of India’s economic recovery.

This is the first time since the initial shock of the coronavirus lockdown in April last year that the consumption of these three fuel has fallen together on a month-on-month basis. The January drop coincides with the steep rise in prices of these essential fuel.

Figures

Petrol consumption had been steadily recovering since August last year, while diesel consumption had been on an upward climb since September last year. According to provisional figures from the Petroleum Planning and Analysis Cell, at 6.804 million tonnes, the consumption of diesel fell 5 per cent on a month-on-month basis in January. Similarly, at 2.61 million tonne, the consumption of petrol declined 4 per cent. LPG also registered a 2 per cent drop in consumption, with demand at 2.492 million tonnes.

January consumption of diesel, the country’s main transportation fuel, also declined on a year-on-year basis by 2 per cent. The fall in demand of diesel is also because many industries such as auto and metal that had been using diesel have now shifted to gas to run their plants.

In Mumbai, the price of diesel rose by ₹2.79 during January alone to reach ₹83.3 at the end of the month, while petrol price in the city rose by ₹2.52 to reach ₹92.86. Prices vary from state to state depending on local taxes, and have been rising at a similar pace across the country.

In December last year, public sector oil marketing companies also hiked in price of non-subsidised LPG cylinders by ₹ 25. Prices of these three fuels have continued skyrocketing through February. On Monday, the price of petrol in Mumbai stood at ₹97 a litre.

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Published on February 22, 2021
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