In recent events of data clarified by Petroleum Planning and Analysis Cell (PPAC) the demand for fuel increased by 6.2% in the month of June due to varied consumption across the country. The availability closing to 15.65 million tonnes demand rose further with a confirmation announced from the Oil Ministry department.
In fact, as per records, the fuel market in India have grown the most in past 15 years. Likewise, in December ’15, it rose by 8.3% significantly issuing the consumption at such high pace. The sole reason might be the use of vehicles which consume gasoline which further boost in mining as well as manufacturing activity. Last year i.e. April 2015 to March 2016, fuel demand crossed 183.5 million tonnes recording an increase of 10.9%. Another factor seems as the manufacturing and sales of passenger vehicles grew at their fastest rate.
In the current state, the demand for gasoline or petrol was recorded 4.4% high at 1.85 million tonnes. Cooking gas or Liquid Petroleum Gas (LPG) increased by 8.5% to 1.61 million tonnes while naphtha sales grew by 15.6% to 1.19 million tonnes. Consumption of gas oil or Diesel was recorded highest in past 4 years increasing by 9.2% to 2.1 million tonnes. Apart from premium fuel, sales of Bitumen, oil used for making roads, increased by 10% and fuel oil surged to 17.3% from the month of June.
In the passing year of April ’15 and March ’16, fuel consumption was recorded highest in comparison to last 15 years. Sales of an automobile, commercial vehicles raised demand in a vigorous manner thus accelerating fuel demand all over the country. All of such progress have impacted in global car making and manufacturing. The leading conglomerates are all set to launch compact sedans and hatchbacks according to preferences. Apart from urban end-meets, the rural area too has increased its fuel demand. Categorically, consumption of Diesel has risen for water pumps, water jets, and so on.
According to insiders, expert opine as the fuel demand in India is likely to rise by 7.3% in the fiscal year 2016-17. An estimation has come from Oil Ministry that consumption which settled to 6.2% will eventually increase by 11.7% closing to 190.3 million tonnes.