No green turn yet as India’s petrol use doubles in a decade; FY24 fuel demand up 5%
Upstox
2 min read • Updated: April 10, 2024, 12:29 PM
Summary
From fiscal year 2013-14 to 2023-24, the consumption of petrol spiked by 117%, whereas the same for diesel grew by around a third. The demand for jet fuel and LPG was up 50% and 82%, respectively, in the 10-year period.
Even as the buzz remains around the adoption of green energy to combat climate change, India’s use of petrol – a fossil fuel linked with high carbon footprint – has doubled over the past decade, as per the official data released this week.
From fiscal year 2013-14 to 2023-24, the consumption of petrol spiked by 117%, the Economic Times reported, based on its analysis of the data shared by the Ministry of Petroleum and Natural Gas.
In the same period, the demand for diesel increased by 31%, liquified petroleum gas (LPG) by 82%, and aviation turbine fuel (ATF) by 50%, it added. However, the consumption of kerosene slumped by 93% in the 10-year period, which is largely on account of the government’s drive to provide LPG cylinders for cooking.
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The demand for petrol has climbed sharper vis-a-vis diesel in the 10-year period as the price gap between the two fuels has been decreasing, experts point out. The low-maintenance charges for petrol-run vehicles, and the availability of EV hybrid cars that run on petrol as well has boosted the demand for the fuel, they added.
An improved electricity supply, with power connections being spread to the remotest parts of the country, has also contributed to the relatively slower growth in diesel demand, analysts noted.
FY24 fuel demand up 5%
The overall demand for fuel, which includes petrol and diesel, climbed by 5% year-on-year in the financial year 2023-24. The country consumed 233.27 million tonnes of fuel in FY24, up from 223.02 million tonnes in the preceding fiscal year, the official data showed.
Within the fuel basket, the overall petrol demand climbed by 6.4% year-on-year, diesel by 4.4% and jet fuel by 10%.
In March alone, the total fuel demand came in at 21.09 million metric tonnes, 0.6% lower than 21.22 million tonnes recorded in the same period last year.
Passenger vehicles run on petrol, diesel and CNG accounted for 98% of the total cars sold in 2023, whereas electric vehicles contributed to only 2% of the sales, as per a recent report released by Counterpoint Research. However, EVs are expected to comprise 4% of the total passenger vehicles sales at the end of 2024, and nearly one-third of total sales by the year 2030, the report said.