India’s petrol and diesel consumption broke all records in May 2024, aided by higher demand for auto fuels due to campaigning and voting in the ongoing Lok Sabha elections and the beginning of summer vacations.
Besides, higher usage also reflects the world’s third-largest crude oil importer’s expanding industrial base and growing demand for personal and commercial mobility.
According to the Petroleum Planning and Analysis Cell, diesel consumption rose to a record 8.4 million tonnes (mt) last month compared to the previous record of 8.2 mt in May 2023. Petrol usage rose to 3.5 mt against the previous high of 3.4 mt in May 2023.
Diesel usage rose by 2.4 per cent Y-o-Y and 6.3 per cent M-o-M in May, while petrol consumption was up 3 per cent Y-o-Y and 6 per cent M-o-M.
Poll and holiday season
As political parties crisscrossed the length and breath of the country reaching out to voters, the demand for auto fuels rose significantly. It was also aided, albeit marginally, by record-breaking summer temperatures and intense heat waves (across north, northwestern and central India), leading to vehicles cranking up cooling.
A major part of election activity was concentrated in May, as it accounted for the highest number of voting rounds—the third, fourth, fifth, and sixth phases—covering 296 parliamentary constituencies to choose the Members of Parliament for the 18th Lok Sabha.
Another factor contributing to the demand was the beginning of summer vacations with people across north and central India driving in huge numbers to the cool chimes of Uttarakhand, Himachal Pradesh and Jammu & Kashmir.
In the last couple of years, this phenomenon has led to severe traffic jams along the hilly states. The beginning of the Char Dham Yatra also contributed to high petrol and diesel consumption.
In FY24, the consumption of diesel and petrol, at 89.65 MT and 37.22 MT, respectively, was also an all-time high. The total consumption of refined petroleum products in FY24 rose by 4.6 per cent Y-o-Y to 233.276 MT, also an all-time high.