India’s petroleum products consumption has finished 2023 on a strong footing. As per Energy Gully’s provisional estimates, overall consumption during the year averaged 5.1 MMBD, compared to 4.8 MMBD in 2022. The consumption was also higher than 2019 (pre-COVID) average level of 4.8 MMBD. Healthy economic growth, along with continued government spending, has been supporting the domestic petroleum products market.
The country had lodged a real GDP growth of around 7.7% in the first half (Apr-Sep) of 2023-24 and overall growth for the ongoing fiscal year is projected to be around 7.0% (as per State Bank of India). India’s manufacturing PMI has also remained in expansion zone throughout 2023. The latest available reading from S&P global put PMI at 56 for November.
In terms of individual products, aviation fuel (19%, y-o-y) has seen the most growth in consumption, followed by bitumen (10% y-o-y) and naphtha (8% y-o-y). Gasoline consumption has seen a growth of 7%, y-o-y and gasoil consumption has seen a growth of 6%, y-o-y.
