Domestic consumption of petroleum products fell 9.1 percent year on year (y-o-y) to 194.7 million tonnes (MT) in FY21, owing primarily to low sales of transportation fuel during the fiscal, which coincided with the country-wide lockdown to contain the coronavirus outbreak.
Petroleum sales have fallen for the first time since the fiscal year 1999, according to data from the government’s petroleum planning and analysis cell (PPAC). Diesel usage, which accounts for roughly 40% of total product sales, fell 11.9 percent to 72.7 MT in FY21, while petrol demand fell 6.7 percent to 27.9 MT.
In the fiscal year, sales of aviation turbine fuel (ATF) fell 53.2 percent to 3.7 MT, as global travel restrictions imposed by the coronavirus remained in place between a number of countries. In line with the government’s goal of increasing the share of gas in the economy, liquefied petroleum gas (LPG) consumption increased 4.9 percent year on year to 27.6 MT in FY21. Bitumen consumption, which is primarily used in road construction, increased 5.9 percent year on year to 7.1 MT.
In March, overall product consumption increased by 18.2 percent year on year, with diesel usage increasing by 27.6 percent to 7.2 MT. The March figures are comparable to the corresponding month in FY20 when the nationwide lockdown was implemented for the first time. Domestic consumption of petroleum products increased by only 0.4 percent year on year to 214.1 MT in FY20.