Fuel demand in India reaches three-year high

Fuel demand in India hit a three-year high in March. As of April 9, data from the Oil Ministry’s Petroleum Planning and Analysis Cell showed that fuel demand rose by 18.62 million tonnes (4.2%) to 19.41 million tonnes from the same month last year, the highest since March 2019. It was 19.56 million tonnes in March 2019.

Petrol sales at all-time high

Petrol sales have reached an all-time high. According to the data, the consumption of petrol was 2.74 million tonnes in March 2021 which increased to 2.91 million tonnes in March 2022. Talking about diesel, in March 2021, 7.22 million tonnes of diesel was sold, which increased to 7.70 million tonnes in March 2022.

Demand rises on prospect of price hike

UBS analyst Giovanni Stanovo attributed the rise in oil demand to the possibility of a price hike. He said that many people bought more fuel in March considering the possibility of price hike. Now with the economy picking up in the coming months, there is every possibility of further improvement in oil demand.

Cheap crude oil bought from Russia

India is dependent on other countries for more than 85% of its crude oil supply. This is the reason why India has now turned to Russia to buy cheap crude oil, from where India is getting oil at a huge discount. According to a Reuters report, Indian refiners have bought at least 16 million barrels of cheaper Russian oil for May loading.