India’s fuel consumption is likely to rise nearly 10 per cent in the fiscal year beginning April 1, as a reflating economy drives petrol and diesel demand, according to Oil Ministry’s projections.
Petroleum product consumption in 2021-22 could hit 215.24 million tonnes, compared to the revised estimate of 195.94 million tonnes consumption of the current fiscal year ending March 31, the ministry’s Petroleum Planning and Analysis Cell (PPAC) said.
This will be the fastest pace of fuel product consumption in six years.
As the economy rebounds from its worst contraction on record and industrial activity picks up, fuel consumption is projected to rise.
An over two-month-long lockdown imposed to curb the spread of the COVID-19 pandemic had shrunk demand to less than half as most vehicles went off roads, trains stopped plying and airlines halted operations.
The reopening of the economy has brought demand back but diesel - the most consumed fuel in the country - is yet to reach pre-pandemic levels.