We are consuming more and more fuel. Indian petroleum products consumption growth rebounded in August registering a 11.4% growth from a year earlier, according to data from Petroleum Planning & Analysis Cell. The measure for July stood at 4.6% (see adjacent chart). Petrol consumption increased by a fourth, recording the highest monthly growth so far this fiscal year. Diesel consumption growth of 13.2% too was the biggest monthly growth this year.
In an interview to CNBC-TV18 last week, M.K. Surana, chairman and managing director of Hindustan Petroleum Corp. Ltd, said there is a general pick up.
Growth in the passenger vehicle segment during April to August was around 10.7% and two wheeler segment growth was around 16.5%, pointed out Surana, all of which adds up to the growth in the fuel segment. At the same time, he said the type of demand seen in August is not representative of the future.
Also, it’s worth remembering that last year’s September had a high base wherein petroleum consumption growth was as much as 15.2% year-on-year. Analysts expect this year’s consumption growth to be slower than last year. From April-August, petroleum consumption growth stood at 9.3%, slower than 10.9% in the last financial year.