May petrol sales in fast lane as summer travel peaks, diesel & ATF go off the boil, LPG on fire

Preliminary sales figures from state-owned fuel retailers, made available on May 16, showed that petrol usage surged by approximately 10 per cent in the first half of May as travel during the summer season caused a spike in demand. Between May 1 and May 15, petrol consumption escalated to 1.5 million tonnes, up from 1.37 million tonnes during the same timeframe last year, news agency PTI reported.

This marks a 10.5 per cent increase over the 1.36 million tonnes consumed during the first half of May 2023 and is nearly 46 per cent higher than the consumption levels observed in the affected first two weeks of May 2021.

Meanwhile, diesel sales experienced a modest growth of 2 per cent, reaching 3.36 million tonnes, as reported by the three major state-owned fuel retailers that control around 90 per cent of the market. Diesel’s demand has shown signs of recovery following a rebound since last month.

Diesel, essential for transportation and the rural agricultural economy, recorded only a 2 per cent increase in demand during the fiscal year that concluded on March 31, 2025. In April, diesel consumption climbed to 8.23 million tonnes, representing nearly a 4 per cent rise from the previous year’s figures.

For the period of May 1-15, diesel sales were 2 per cent higher compared to the 3.29 million tonnes consumed during the same period last year. Additionally, this represents a 1.3 per cent increase over the first half of May 2023, and a significant 16 per cent rise from the Covid-affected first fortnight of May 2021. Diesel sales also increased by 5.2 per cent when compared to the 3.19 million tonnes consumed in the first half of April 2025.

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As summer sets in, there is typically an uptick in rural demand for irrigation and air conditioning in urban areas. Industry experts noted that diesel had been experiencing a slowdown in recent months, prompting discussions about its future trajectory. The growth seen since April has been attributed to a rise in consumption for election campaigning that took place the previous year.In terms of aviation fuel, the growth in jet fuel (ATF) consumption slowed to 1.1 per cent, totaling 327,900 tonnes during the May 1-15 period. This deceleration can be traced back to flight restrictions imposed in certain regions of northern and western India due to ongoing tensions with Pakistan, which negatively impacted demand.However, ATF sales were still 8.6 per cent higher compared to the same period in May 2023 and 11 per cent more than the first half of May 2021. In comparison to the previous month, jet fuel consumption saw a decrease of 5.8 per cent from the 348,100 tonnes recorded during April 1-15.

LPG (liquefied petroleum gas) consumption continued its robust growth, increasing by 10.4 per cent to reach 1.34 million tonnes in the first fortnight of May, largely fueled by Ujjwala connections. Since 2019, domestic cooking gas consumption has effectively increased by volumes equivalent to nearly five months.

Cooking gas sales during this period were 10 percent higher than the 1.22 million tonnes consumed during May 1-15, 2023, and 33 per cent greater than the 1.01 million tonnes recorded in the first half of May 2021. Additionally, LPG sales rose by 7.3 per cent compared to the 1.25 million tonnes consumed in the first half of April.

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