India’s fuel demand has reached its highest level in over 20 years in February, with the consumption of fuel rising by greater than 5% to 4.82 million barrels per day (18.5 million tonnes), based on information launched on Thursday. This is the fifteenth consecutive year-on-year rise, and demand was the highest recorded in information compiled by the Indian Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) going again to 1998.
The surge in demand for fuel is attributed to a mix of worthwhile refining from document Russian crude imports in February, whole utilization for major distillation throughout India, and still-robust home consumption. Sales of gasoline rose by 8.9% year-on-year to 2.8 million tonnes, whereas diesel consumption climbed 7.5% to six.98 million tonnes. Sales of jet fuel additionally jumped greater than 43% to 0.62 million tonnes, based on the information.
The energy in demand highlights the economic exercise in Asia’s third-biggest financial system, which has been boosted by low cost Russian oil. The demand for jet fuel is anticipated to indicate the highest development fee in 2023, adopted by gasoline and diesel/gasoline oil. Despite the truth that the gross sales information for each gasoline and diesel confirmed a lower in whole quantity in February in comparison with January, they skilled a major improve in every day consumption.
While gross sales of bitumen, a road-building materials, elevated by 21.5% on a month-to-month foundation, cooking gasoline, or liquefied petroleum gasoline (LPG), gross sales decreased barely by 0.1% to 2.39 million tonnes. Meanwhile, fuel oil use dropped by simply over 5% in February in comparison with January.
It is forecast that demand in March will probably be at 5.17 million barrels per day (bpd), after which the seasonal monsoon-driven slowdown will result in it dropping to five million bpd in April-May. The improve in fuel demand is an indication of a quickly rising financial system, and India is poised to turn into the world’s third-largest vitality shopper by 2030, based on the (*24*) Energy Agency.
FAQs:
Q1: What led to the surge in India’s fuel demand in February?
The surge in India’s fuel demand in February was attributed to a mix of things, together with worthwhile refining from document Russian crude imports, whole utilization for major distillation throughout India, and sturdy home consumption.
Q2: What is the projection for fuel demand development fee in 2023?
According to Alan Gelder, VP Refining, Chemicals, and Oil Markets at Wood Mackenzie, the strongest demand development fee in 2023 is projected to be in jet fuel, adopted by gasoline after which diesel/gasoline oil.
