LPG sales declined sharply in May; Petrol, diesel consumption increased: Data
New Delhi, June 4: Amidst huge pressure on the fuel supplies, the sale of LPG by State-run oil companies declined sharply by 24 per cent in the month of May on year-on-year basis but consumption of petrol and diesel saw a strong growth.
Three state-owned oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) — collectively account for nearly 90 per cent of India’s petrol, diesel and aviation fuel market, while dominating almost the entire domestic LPG segment.
According to provisional data from these companies, Petrol sales rose 4.8 per cent year-on-year during the month, while diesel sales increased 6.4 per cent,
Aviation turbine fuel (ATF) sales also grew 1.8 per cent year-on-year, signalling continued momentum in air travel demand.
Industry-wide sales data, including figures from private fuel retailers, are expected to be released by the oil ministry within a week and are likely to offer a more comprehensive picture of fuel demand trends in May.
The sharp decline in LPG consumption comes after state-run companies reported a nearly 16 per cent year-on-year drop in LPG sales in April, indicating continued weakness in the segment. In contrast, diesel demand remained notably strong.
The unusually high growth in diesel sales suggests a shift in demand away from private fuel retailers to state-run pumps, particularly as bulk diesel consumers increasingly moved to retail outlets to benefit from lower prices.
Diesel, which generally grows at a slower pace than petrol due to its significantly larger consumption base, outpaced petrol growth in May despite India consuming nearly two-and-a-half times more diesel than petrol.
