Festivities drive fuel consumption above pre-Covid levels

The nation’s diesel consumption in October rose above pre-Covid levels for the first time in a year on the back of festive demand. Diesel consumption rose 1.3 per cent to 5,863.9 thousand metric tonnes (TMT), compared to 5,790.2 TMT in October 2019, but was down 5.1 per cent from October 2020, according to data compiled from state-owned oil marketing companies.

Petrol consumption rose to 2,485.2 TMT in October, up 8.2 per cent from the corresponding period in 2019. Diesel accounts for about 40 per cent of India’s petroleum product consumption and is considered a key indicator of economic activity.

The rise in diesel consumption was due to increased movement of goods during the festive period, according to officials at oil marketing companies.