India’s fuel consumption in April totalled 17.67 million tonnes as compared to 16.91 million tonnes in the same month last year, thus rising by 4.4% YoY. While Petrol sales surged by 9.2% YoY to 2.28 milion tonnes, diesel which constitutes ~40% of total petrol products posted 2.6% growth in consumption at 7.15 million tonnes. Jet fuel or ATF grew by 13.4% to 6,92,000 tonnes.
Why is this important
Growth in fuel demand is an important indicator to gauge increase/decrease in overall economic activity in an economy. It is to be noted that India had cut fuel demand growth estimate to 4.5% for March,2018 as against initial estimate of 5.8% citing slower economic activity. Want to know more?Click here
How stocks will be impacted
The news will have a positive impact on energy sector as sales volume of energy companies are bound to increase with increase in economic activities in the country.