• India's economy is seeing a surge in petrol, aviation turbine fuel, and LPG consumption, indicating a growing demand.
• Petrol sales rose by 7.3%, LPG by 7.5%, and jet fuel by 2.5% year-on-year during the festive season, while diesel sales declined by 3.3%.
• The rise in LPG consumption is attributed to the issuance of 10.33 crore deposit-free LPG connections under the Pradhan Mantri Ujjwala Yojana (PMUY).
• The surge in fuel sales is a positive sign of economic growth, but challenges remain in ensuring the benefits of schemes like PMUY reach the intended beneficiaries.

India's economy is witnessing a significant surge in the consumption of petrol, aviation turbine fuel, and LPG. This increase, observed in October this year compared to the same period last year, is a clear indication of the rising demand for these fuels in a rapidly growing economy.

Public sector oil companies have released data showing that petrol sales have risen by 7.3 per cent, LPG consumption has surged by 7.5 per cent, and jet fuel demand has increased by 2.5 per cent year-on-year during the festive season. This increase in fuel consumption is set against the backdrop of rising sales of cars, SUVs, and two-wheelers in both urban and rural areas of the country.

However, diesel sales have seen a decline of 3.3 per cent. This decline is attributed to the extended monsoon season, which led to a delay in the sowing season, thereby impacting the demand for the fuel in the farm sector.

Petrol and Jet Fuel Sales on the Rise

The sales of petrol by Indian Oil, Bharat Petroleum, and Hindustan Petroleum, which account for over 90 per cent of the total market, increased to 3.1 million tonnes in October from 2.87 million tonnes in the same month last year.

The increase in air travel, driven by a surging middle class benefiting from higher economic growth, has led to a rise in the consumption of jet fuel to 6,47,700 tonnes during October 2024. Domestic airlines flew 1.30 crore passengers in September, which is 6.38 per cent higher compared to the year-ago period.

LPG Consumption and PMUY Scheme

LPG sales were up 7.5 per cent year-on-year at 2.82 million tonnes in October 2024. LPG consumption is now 13.1 per cent higher than in October 2022. The rise in LPG consumption is attributed to the issuance of as many as 10.33 crore deposit-free LPG connections under the Pradhan Mantri Ujjwala Yojana (PMUY) to women from poor households across the country as of August 1, 2024.

The target to release 8 crore connections was achieved in September 2019. To cover the remaining poor households, the second phase of the scheme, Ujjwala 2.0, was launched in August 2021, and by January 2023, 1.60 crore connections had been released. In September 2023, the government approved the release of an additional 75 lakh PMUY connections.

The public sector oil marketing companies have completed the release of these 75 lakh PMUY connections as of July 8, 2024. Other steps have been taken to popularize LPG, such as spreading awareness about the advantages of using LPG over other conventional fuels and the safe usage of cooking gas through LPG Panchayats and awareness camps.

As a result of these efforts, the per capita consumption for PMUY beneficiaries has improved to 3.95 refills in FY 2023-24.