New Delhi: India witnessed a robust rise in fuel consumption this April, signalling an uptick in economic momentum across key sectors such as agriculture, transportation, and industry.
According to data from the Petroleum Planning & Analysis Cell (PPAC), diesel usage reached 8.24 million tonnes last month—marking the second-highest monthly level on record.
This reflects a 4% year-on-year increase, despite being measured against a strong base from April 2024, when demand had soared due to nationwide election campaigning.
Diesel, which accounts for nearly 40% of total fuel sales, saw a boost driven largely by increased activity in logistics and farming, alongside steady consumption from the mining and industrial sectors.
The data suggests a broader acceleration in economic activity, particularly in rural and infrastructure-related areas.
Petrol consumption also grew by 4.6%, hitting 3.44 million tonnes. Although this figure is modest compared to the 19% surge seen last year—again attributed to election-related travel—the sustained increase aligns with rising vehicle ownership and strong automotive sales, both hallmarks of a growing economy.
Meanwhile, LPG usage jumped 6.7% in April to 2.62 million tonnes, bolstered by the Ujjwala scheme, which continues to expand clean cooking access to low-income households.
Additionally, commercial LPG demand—particularly from hotels and restaurants—has picked up, reflecting a recovery in the hospitality sector.
The aviation sector also showed positive momentum. Consumption of aviation turbine fuel (ATF) rose 3.25% year-on-year, with airlines using 766,000 tonnes in April.
This comes at a time when air travel continues to rebound and airline operations expand across the country.
In a move likely to ease operational costs for businesses, public sector oil marketing companies reduced the price of commercial LPG cylinders by Rs. 14.50 per 19-kg unit.
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They also slashed jet fuel prices by 4.4%, translating to a reduction of Rs. 3,954.38 per kilolitre, bringing the cost to Rs. 85,486.80 per kl.
For airlines like IndiGo and Air India, where fuel makes up nearly 30% of total operating expenses, the drop provides welcome financial relief.
These price cuts come amid a global dip in crude oil prices, with Brent crude falling to approximately $63 per barrel—its lowest level since April 2021.
