Petroleum consumption contracts 9.1% in FY21

Domestic consumption of petroleum products in FY21 fell 9.1% year-on-year (y-o-y) to 194.7 million tonne (MT), mainly on the back of low sales of transportation fuel in the fiscal amid the country-wide lockdown to contain the outbreak of the coronavirus.

Petroleum sales have fallen for the first time since FY99, for which data is available with the government’s petroleum planning and analysis cell (PPAC). Diesel usage, which comprise about 40% of overall product sales, dipped 11.9% to 72.7 MT in FY21, while demand of petrol fell 6.7% to 27.9 MT.