New Delhi: India’s fuel demand reached its highest level in six months in November, driven by increasing transport activity, higher diesel use and rising industrial needs. According to data from the Petroleum Planning and Analysis Cell, total fuel consumption rose to 21.27 million metric tons, up 5.5 percent from October and 3 percent higher than the same month last year.
Diesel demand saw the largest jump. Consumption increased to 8.55 million tons in November, a rise of more than 12 percent from the previous month and nearly 5 percent higher compared with last year. Analysts say the increase is linked to strong trucking movement, agriculture activity during the harvest season and continued infrastructure spending.
Liquefied petroleum gas usage also grew, reaching 2.86 million tons, up more than 7 percent from a year earlier. However, petrol consumption dropped slightly by around 4 percent from October, although it remained higher than last year.
Other fuel products showed mixed trends. Bitumen demand rose sharply due to road construction projects, while naphtha consumption fell because of weaker industrial activity in some sectors.
The rise in consumption comes at a time when India continues to adjust its sourcing of crude oil. Even though Russia recently assured uninterrupted fuel supplies during President Vladimir Putin’s visit to India, refiners in the country are still cautious due to international sanctions placed on certain Russian energy companies.
Recent industry data also shows that India’s crude oil imports increased in October, reaching their highest level in six months. Energy analysts say the trend points to steady economic momentum as the country heads into the final quarter of the financial year.
Global energy bodies have also adjusted projections upward as fuel consumption in countries including India shows signs of recovery. However, some forecasts warn that global oversupply may impact prices in the coming months.
Observers say India’s long term energy picture continues to expand beyond traditional fuels. Recent agreements for increased LNG supply and growth in renewable power generation indicate gradual diversification of the energy mix.
Industry experts will be watching December data to see whether strong demand continues or eases after the seasonal peak.