Petroleum products demand up 2.6% in June

Domestic demand for petroleum products rose 2.6% year-on-year in June, helped by growth in petrol and jet fuel. Petrol sales grew 4.6% on-year in June while diesel sales expanded only 1%, according to the oil ministry data. Diesel accounts for 40% of the sales volume of petroleum products in the country. Petrol makes up 17% while LPG accounts for 12%.

LPG, used mostly as cooking gas in the country, grew 3.2% in sales in June. Jet fuel consumption grew 10%, helped by a rise in holiday travel in June. Sales of bitumen, used mainly in building roads, grew 4.2% while the use of polluting petcoke rose 2%.

Petrol sales were helped by strong new vehicle sales and increased holiday travel. Diesel is used mainly in long-haul transport, mining, irrigation, and backup generators.

A major shift in preference from diesel-powered to petrol-powered passenger vehicles for years has ensured a big diesel sales growth has trailed petrol's. Diesel consumption is also being reduced by Indian Railways, which has increasingly shifted to electricity.