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India's fuel demand expected to grow 5.5% next fiscal

India's fuel demand expected to grow 5.5% next fiscal

India's fuel demand expected to grow 5.5% next fiscal
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By PTI Feb 22, 2022 3:47 PM IST (Updated)

Fuel consumption in 2022-23 is estimated to rise to 214.5 million tonne from 203.2 million tonne expected sales in the current fiscal year ending March 2022, according to the oil ministry's Petroleum Planning and Analysis Cell (PPAC).

India's fuel demand is likely to grow 5.5 percent in the fiscal year beginning April 1 as economic activity picks up after devastation caused by the pandemic, government estimates showed on Tuesday.

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Fuel consumption in 2022-23 is estimated to rise to 214.5 million tonne from 203.2 million tonne expected sales in the current fiscal year ending March 2022, according to the oil ministry's Petroleum Planning and Analysis Cell (PPAC).
It will cross the pre-pandemic level sales in the current fiscal. In 2019-20, India had consumed 214.1 million tonne of petroleum products such as petrol, diesel and LPG.
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Demand for petroleum products grew by 4.9 percent in the first nine months of the current fiscal year that began in April 2021. Fuel consumption was 148.3 million tonne in April-December 2021.
India consumed 194.3 million tonne of petroleum produced in 2020-21 - the year that saw a pandemic-related lockdown crippling economy and mobility. During the next fiscal 2022-23, petrol, used mainly in cars and two-wheelers, is expected to rise by 7.8 percent to 33.3 million tonne.
Sales of diesel, the most used fuel, is slated to grow by 3.9 percent to 79.3 million tonne, according to PPAC. Consumption of aviation fuel (ATF) is projected to increase by 49 percent to 7.6 million tonne. This is however less than the pre-pandemic level of 8 million tonne.
Cooking gas LPG, whose consumption had risen even during the pandemic year due to free cylinders distributed by the government to the poor to tied over hardships of lockdown, is projected to see a 4.5 percent growth in demand to 29.6 million tonne in 2022-23.
While kerosene sales is seen flat at 1.5 million tonne, naphtha consumption is projected to rise by 3.3 percent to 15 million tonne.
Petcoke, a better-burning alternative to coal, is likely to see a demand growth of 2.8 percent to 14.8 million tonne while bitumen - used in road construction - is projected to see sales rising by 1.8 percent to 7.9 million tonne.
Demand for petcoke has fallen over the years - from a peak of 25.7 million tonne in 2017-18 to 21.7 million tonne in the pre-pandemic year 2019-20 and 15.6 million tonne in 2020-21.
However, bitumen consumption, which reflects industrial activity, has been on the rise. Naphtha consumption is expected to be above the pre-pandemic level in the current fiscal.
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