India's petrol, diesel usage climbs in May in backdrop of Lok Sabha elections

India's usage of petrol and diesel climbed in May 2024 – the month which witnessed four out of the seven phases of the high-stake Lok Sabha elections 2024.

The total gasoline or petrol usage rose 2.4% year-on-year (YoY) to 3.43 million tonnes, as per the data shared by the Planning and Analysis Cell (PPAC) of the Union Petroleum Ministry.

The demand for diesel, used in the construction sector as well as a combustion fuel for trucks and other heavy vehicles, jumped 1.8% YoY to 8.37 million tonnes in May 2024, the data showed.

"Election campaigning results in more travel, which could be a factor in oil demand increase in May," news agency Reuters quoted LSEG analyst Ehsan Ul Haq as saying.

Overall fuel usage drops

India's overall fuel usage fell 1% YoY to 20.49 million metric tonnes in May 2024, according to the PPAC data.

In May 2023, the overall fuel demand stood at 20.69 million tonnes, the data showed. The decline was driven by a plunge in the demand for naphtha and bitumen.

Sales of Naphtha, which is a kind of raw petrol used by the chemical industry, dropped 2.4% year-on-year (YoY) to 3.43 million tonnes. The decline was sharper at 5.6% YoY in the case of bitumen, which is used for making roads.

However, the total demand for LPG, used as a cooking gas, increased 2% YoY to 2.39 million tonnes.