India's Petrol Sales Hit 5-Month High in October on Festive Travel; Diesel Consumption Stagnates

India experienced a significant surge in petrol sales, reaching a five-month peak in October with 3.65 million tonnes consumed, a 7% increase year-on-year. This boost is attributed to heightened travel demand during the festive season. In contrast, diesel, the most consumed fuel in the country, showed a marginal decline, with sales at 7.6 million tonnes in October compared to the previous year. This deviates from the historical trend where diesel consumption typically rebounds after the monsoon season, especially with increased trucking activity. Aviation Turbine Fuel (ATF) consumption continued its recovery, rising by 1.6% year-on-year, indicating a healthy revival in air travel. Liquefied Petroleum Gas (LPG) sales also saw a healthy increase of 5.4%, partly due to the expansion of the subsidized LPG supply scheme, PMUY, adding 25 lakh new households. Over the first seven months of the current fiscal year, petrol consumption has grown by 6.8%, while diesel sales have increased by 2.45%. ATF consumption is up 1% and LPG demand has risen 7.2% for the fiscal year to date.

Impact This news suggests robust consumer mobility and economic activity, particularly in sectors reliant on personal transport and travel, which is positive for the auto and tourism industries. The stagnation in diesel sales could indicate slower growth in heavy freight transport or industrial sectors, or a potential shift in logistics. The rebound in ATF signals a healthy recovery in the aviation sector. Overall, these fuel consumption trends provide insights into India's economic health and consumer spending patterns. Impact rating: 7/10

Heading Difficult Terms and Meanings: Consumption: The amount of a product or service that is used. Year-on-year (YoY): Comparing data from a specific period with the same period in the previous year. Month-on-month (MoM): Comparing data from a specific month with the previous month. Flattish: Showing little or no significant change or growth. Onset: The beginning of something, especially something unpleasant. Irrigation pumps: Machines used to pump water for watering crops. Vehicular movements: The movement of vehicles on roads. Rebounded: Recovered or increased after a period of decline. Trucking: The transportation of goods by truck. Aviation Turbine Fuel (ATF): A type of jet fuel used in aircraft. Liquefied Petroleum Gas (LPG): A fuel gas used for cooking and heating, stored under pressure as a liquid. Subsidised LPG supply scheme: A government program that provides LPG at a reduced price to eligible households. CAGR (Compound Annual Growth Rate): The average annual growth rate of an investment over a specified period longer than one year. Fiscal year: A period of 12 months, usually from April to March in India, used for financial accounting. Tonnes: A unit of weight, equal to 1,000 kilograms.