India’s Petroleum consumption contracts 9.1% in FY21

The Petroleum Planning and Analysis Cell operating under Ministry of Petroleum recently released a report on petroleum consumption of India. According to the report, fuel consumption of the country reduced by 9.1% in the year 2020-21 as compared to that of the previous year. This is the first time the petroleum consumption contracted to the highest since 1998-99.

Key Findings of the report

  • Diesel Consumption fell 12% and petrol consumption fell to 6.7%.
  • The Diesel consumption in 2020-21 was 72.72 million tonnes and petrol consumption was 27.95 million tonnes.
  • Overall, India consumed 194.63 tonnes of petroleum products as compared to 214.12 million tonnes the previous year.
  • The jet fuel consumption fell by 53.6% as the airlines remained shut for most of the period throughout the year.
  • Domestic cooking gas, LPG was the only fuel whose consumption increased in 2020-21. The consumption of LPG increased by 4.7%. In 2019-20, the LPG consumption was 26.33 million tonnes and in 2020-21 the LPG consumption was 27.59 million tonnes.

Petroleum Planning and Analysis Cell

The Petroleum Planning and Analysis Cell (PPAC) was created in 2002. It was created after dismantling the Administered Pricing Mechanism in the petroleum sector. Also, the Oil Coordination Committee was abolished and replaced with PPAC. The PPAC assists the Ministry of Petroleum in administering subsidies on domestic LPG, kerosene, and freight subsidies for far flung areas. Also, it assists in maintaining data or information to deal with emergencies and unforeseen situations.

The expenditure of PPAC is borne by Oil Industry Development Board.

Objectives of PPAC

The main objectives of PPAC are as follows:

  • To make sure, if the subsidy schemes of GoI are implemented properly.
  • To analyse the trends in prices of petroleum products and crude oil.
  • To collect data on domestic oil and gas sector.




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