India’s fuel consumption hit 21.75 million metric tons in December, up 5.3 per cent year-on-year and the highest monthly number recorded in oil ministry data going back to April 1998.
Why it’s important
India is the world’s third-largest consumer and importer of oil and the largest buyer of Russian seaborne crude, taking advantage of discounts on Russian oil as Europe and the US shun those barrels over Russia’s invasion of Ukraine.
By the numbers
Data released by the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) on Tuesday showed sales of gasoline, or petrol, stood at 3.56 million metric tons in December, up 1.1 per cent from November and 7.1 per cent from a year earlier.
Diesel consumption was at 8.46 million tons, up 5 per cent from a year earlier but down 1.1 per cent month-on-month. Liquefied petroleum gas consumption rose 11.2 per cent from a year earlier to 3.08 million tons. Naphtha sales fell 0.4 per cent year-on-year to 1.01 million tons, while consumption of bitumen, used primarily in road construction, rose 0.3 per cent from November and 18.8 per cent on an annual basis at 0.91 million tons.
Fuel oil usage stood at 0.57 million tons, rising 2.3 per cent from a year earlier and about 1.6 per cent month-on-month.
Context
The US could raise tariffs on India if New Delhi does not meet Washington’s demand to curb purchases of Russian oil, President Donald Trump said on Sunday.
Trump’s comments follow months of trade negotiations after the US doubled import tariffs on Indian goods to 50 per cent last year as punishment for its heavy buying of Russian oil. Reliance Industries said it is not expecting any Russian crude oil deliveries in January.
