Published: August 8, 2023 3:46 pm
Author: RT
Increased industrialization, infrastructure development, and rising vehicle sales have contributed to higher demand
Sales of petroleum products in India surged to 223 million tons in the fiscal year that ended on March 31, marking growth of 10% compared to the same period one year previously, according to Rameswar Teli, minister of state for petroleum and natural gas.
Teli specified that the surge was led by a 13% rise in petrol consumption and a 12% increase in diesel sales.
The increase in the consumption of petroleum products was triggered by higher demand for transportation, energy, and fuel. This arose due to strong economic growth, expanded industrialization, urbanization, and infrastructure development, as well as from growing vehicle sales.
Retail prices for fuel dropped after New Delhi reduced central excise duties on petrol and diesel in November 2021 and May 2022 respectively.
The government has also taken steps to reduce the country’s dependence on imported crude by adopting a five-pronged strategy that includes increasing domestic production of oil and gas, as well as promoting energy efficiency and conservation measures. Moreover, New Delhi has emphasized demand substitution and has promoted biofuels and other alternatives, also improving refinery processes.
READ MORE: India’s oil-buying spree hits new high
Asia’s third-biggest economy, which is also the world’s third-largest oil importer and consumer, has ramped up oil purchases over the past two years after lifting Covid-related restrictions. India’s imports of crude from Russia have reached record highs after the sanctions-hit nation was forced to reroute energy supplies to Asia in response to Western restrictions over the conflict in Ukraine.
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