Indian domestic consumption of Petrol, Diesel has gone up, as the number of new vehicles on road has gone up by 36%. the domestic car sales were up 19.64% at 1,99,479 units as against 1,66,732 units in May 2017. Utility Vehicle sales rose 17.53% to 82,086 units, while sales of Van surged to 29.54 %, 19,673 units during the month.
Fuel consumption is a proxy for oil demand went up to 18.72 million tonnes in May 2018. Diesel sales went up by 7.55 million tonnes, petrol by 2.46 million tonnes, which is the highest record in consumption of oil so far since April 1998.
India being the third largest country to consume oil as fuel, a record sale of 35.2 million tonnes of diesel from 1st January till 31st May 2018.
It is a fact that 65% of Indian's employment sector is the agriculture sector, where oil is essential to pump water for irrigation. As monsoons have arrived, consumption may go up.
International crude oil rates are steadily on the up, making Indian government reduce export to sustain the domestic supply- demand. 4.87 million tonnes of diesel export in March came down by 22% in April 2018, the figure stood at 3.79 million tonnes.