India’s fuel demand has seen a significant rebound in February 2023, marking a positive turn for the country’s economy. According to reports, the country’s fuel consumption in February 2023 increased by 18% as compared to the same period in the previous year, which is the sharpest rebound in fuel demand India has seen in recent times.
The sharp increase in fuel demand can be attributed to a number of factors, including a steady recovery in the country’s economy, an increase in consumer spending, and the rise in industrial activities. The COVID-19 pandemic had a severe impact on India’s economy and fuel demand in 2020, with the country recording a significant decline in consumption due to lockdowns and restrictions on movement.
However, with the gradual reopening of the economy, there has been a steady increase in fuel consumption. In addition, the country’s government has taken several measures to boost the economy, including the introduction of stimulus packages and a focus on infrastructure development, which has further fueled the increase in fuel demand.
Petrol sales jumped almost 18 per cent to 1.22 million tonnes in the first half of February, as compared to 1.04 million tonnes of consumption in the same period of last year. Sales were 18.3 per cent higher than in COVID-marred first half of February 2021 and 15.7 per cent more than in the same period of 2020.
Diesel, which is widely used in transportation and industry, recorded a 16.7% increase in consumption, while petrol consumption increased by 18%. LPG, which is used for cooking, also saw a 14.7% increase in consumption, further indicating the rise in economic activities and consumer spending.
Reflecting the trend, jet fuel (ATF) demand jumped 43.7 percent to 2,94,000 tonnes during the first half of February when compared to the same period last year. It was 35.6 percent higher than February 2021 but 12.8 per cent lower than February 2020. Month-on-month sales were up 4.22 per cent.
The increase in fuel demand is a positive sign for India’s economy, which had been struggling due to the impact of the pandemic. The rise in consumption has a positive impact on the country’s oil and gas sector and is expected to boost the revenues of oil companies.
However, the sharp increase in fuel demand has also raised concerns about the impact on the environment. The use of fossil fuels is a significant contributor to carbon emissions, which is a major cause of global warming and climate change. India has been focusing on the adoption of clean energy and the reduction of carbon emissions to combat climate change. The government has set a target of achieving 450 GW of renewable energy by 2030, which is expected to reduce the country’s dependence on fossil fuels and reduce its carbon footprint.
The sharp rebound in India’s fuel demand in February 2023 is a positive sign for the country’s economy, which is gradually recovering from the impact of the pandemic. However, it is also important to balance economic growth with environmental concerns and to focus on the adoption of clean energy to reduce the country’s dependence on fossil fuels and promote sustainable development.
