Petrol-Diesel: Where is Petrol-Diesel consumption more and where is it less? Know Here

New Delhi: In response to Prime Minister Narendra Modi’s call to conserve petrol and gas, the Union Petroleum Minister’s remarks have only added to consumers’ frustrations. The Minister indicated that if retail oil prices do not change, the losses for state-owned oil companies could surpass Rs 1 trillion. Nevertheless, he reassured the public that the nation possesses ample oil reserves and that there will be no energy shortages, even amid the turmoil in West Asia.

Petroleum Minister Hardeep Singh Puri emphasized that despite the global energy crisis, India faces no supply issues, boasting two months’ worth of fuel reserves. He cautioned that if crude oil prices remain elevated while retail prices stay the same, state-owned petroleum firms could incur losses of up to Rs 1 lakh crore in just one quarter. Thus, it will be essential to evaluate how long these companies can continue selling petrol, diesel, and cooking gas (LPG) at a loss. However, he refrained from discussing any potential price hikes.

No Supply Problems

The Petroleum Minister reiterated that there are no supply challenges. India entered the crisis with sufficient reserves and has ramped up domestic LPG production from 36,000 tonnes to 54,000 tonnes daily. Still, he recognized the growing financial strain from maintaining stable retail prices. He mentioned that the country’s petroleum companies are facing losses of Rs 1,000 crore each day.

How much loss per litre?

Currently, companies are incurring a loss of Rs 14 per litre on petrol, Rs 42 per litre on diesel and Rs 674 per cylinder on cooking gas. Puri, on PM Modi’s appeal for energy conservation, said that this does not mean that any lockdown or rationing (limit on purchases) is going to be implemented from tomorrow, but it is a message to be prepared for future challenges. He appealed to industries and households to switch from LPG to PNG wherever possible, as India is rapidly expanding its gas pipeline network. India currently has 60 days of crude oil reserves, 60 days of LNG reserves and 45 days of LPG reserves.

Where is petrol consumption higher and where is it lower?

When looking at the wholesale and retail usage of petrol and diesel, the retail sector makes up 90% of the total consumption. This includes everyday users like private cars and bikes, as well as small transport vehicles that fill up at petrol stations. Government agencies and railways contribute to about 2% of wholesale consumption. Additionally, state transport corporations, the military, and large industries buy fuel directly from oil companies in bulk.

The highest consumption is found in Uttar Pradesh

Uttar Pradesh leads in both diesel and petrol consumption, followed by Maharashtra, which ranks second due to its industrial and transportation activities. Gujarat and Tamil Nadu also have significant diesel consumption driven by industrial needs and port activities.

In states such as Uttar Pradesh, Madhya Pradesh, Punjab, and Haryana, diesel consumption sees a rise of 15-20% during the farming season, which includes sowing and harvesting periods. In the Delhi-NCR region, petrol demand growth remains steady, thanks to the rising popularity of CNG and electric vehicles (EV).

Consumption patterns in Maharashtra and Gujarat

Maharashtra and Gujarat together account for roughly 25% of the nation’s total diesel consumption, largely because the main freight corridor runs through these states. In contrast, petrol consumption is notably higher in South Indian states, where the per capita number of bikes exceeds that of North India.