Despite a slight 0.6% year-on-year decline in fuel consumption for March, India's overall oil demand for the fiscal year 2024 surged by approximately 5%, reaching a record high. Data released by the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry indicated that total fuel consumption in March stood at 21.09 million metric tons (equivalent to 4.99 million barrels per day), marginally lower than the 21.22 million tons recorded last year.

However, the broader picture for the fiscal year ending in March was notably positive, with demand hitting an all-time high of 233.276 million tons (equivalent to 4.67 million barrels per day), marking a substantial increase from the previous fiscal year's 223.021 million tons.

The growth was primarily propelled by robust sales of automotive fuels and naphtha throughout the year. Diesel, a key indicator of economic activity, saw a 3.1% year-on-year increase in March, while sales for the entire fiscal year rose by 4.4%. Similarly, gasoline sales surged by 6.9% in March and 6.4% for the fiscal year, underscoring a sustained recovery in mobility and transportation sectors.

Sales of liquefied petroleum gas (LPG) also saw a healthy uptick, rising by 8.6% in March, reflecting continued adoption of clean cooking fuels across the country. Notably, naphtha sales experienced a significant 5.5% jump compared to last March, driven by industrial demand.

Despite some segments like fuel oil witnessing a decline, the overall trajectory points towards a resilient recovery in India's fuel consumption, signaling a positive outlook for the energy sector amid evolving market conditions.