Petrol Demand To Hit Record High In Current Fiscal Amid Easing Of Covid Curbs: Report

Changes in India's fuel demand patterns are crucial for global oil markets as Asia's third-largest economy is seen as the main driver of rising demand for energy over the next two decades

The country's petrol demand is set to hit a record this fiscal year, with consumption accelerating as more people hit the road for business and leisure travel after easing of COVID-19 curbs. Shunning trains, buses and planes, safety-conscious Indians are buying more cars and increasingly using personal vehicles to commute as they embark on 'revenge travel' - flocking to tourist destinations after months of restrictions, despite record high fuel prices. Annual passenger vehicle sales in India rose by 45 per cent to 264,442 units in July, driven by pent-up demand, according to data from the Society of Indian Automobile Manufacturers. The stronger-than-expected petrol consumption growth could prompt Indian refiners to import the fuel or boost diesel exports in coming months. Indian refineries are traditionally configured to maximise production of diesel, where demand is still below pre-COVID levels, hurt by an uneven economic recovery