GST Relief, Festive Season Drive Diesel Demand to 8.5 Million Tonnes in November

The benefit of festive demand, along with the reduction in GST rates, has been clearly visible in energy consumption. Diesel demand in November stood at 8.5 million tonnes, its highest level in six months; this, believe experts, would also be diesel's strongest performance since May. Diesel accounts for the largest share of auto fuel in the country, so its consumption indicates the growth of the economy.

According to PPAC data, diesel demand had been declining for three consecutive months before this, but the situation improved in October, with sales reaching 6.79 million tonnes. Meanwhile, petrol consumption increased by 6.25 percent to 28.3 million tonnes in the current financial year.

Demand for jet fuel (ATF) also continued to grow, with consumption registering a 4.7 percent increase in November to 78.3 million tonnes. LPG sales also increased by 7.62 percent to nearly 3 million tonnes. Increased domestic consumption played a major role in this growth.

2.5 million new families were added under the Pradhan Mantri Ujjwala Yojana (PMUY), increasing the number of beneficiaries from 103.3 million to 105.8 million.