India's Fuel Demand Jumps 24% Year-on-Year in May

India's fuel consumption increased 23.8% year-on-year in May, continuing to recover from the relatively low base of 2021 when the second wave of COVID-19 hit the world's third-largest oil consumer.

According to data from the Indian oil ministry's Petroleum Planning and Analysis Cell, fuel consumption, which is an indicator of oil demand last month, totaled 18.27 million tons. Last month's increase was the largest year-over-year increase since April 2021. Consumption also increased by 0.4% from April.

Diesel consumption in May increased by 31.7% year-on-year to 7.29 million tonnes, an increase of about 32.6% from two years ago. Gasoline sales were 3.02 million tonnes, an increase of 51.5% over the previous year.

Gasoline sales in India have increased since people began to prefer private cars to public transport for safety reasons and to avoid heat waves, and the pandemic lockdown was eased.

According to a study, India's retail inflation fell slightly in May, well above the central bank's permissible limits, offsetting rising fuel prices due to fuel tax cuts.