Defying the widely accepted economic theory that rising prices curb consumption, use of petrol in India has actually grown at a healthy pace in the last three years of price deregulation. The slowdown in economic activity, which has affected consumption of other liquid fuels, hasn’t actually impacted petrol.
While consumers expressed their displeasure – at times, even anger – at rising prices, it didn’t deter them from using the fuel. Petrol prices at retail outlets in Mumbai have risen from 52.2/ litre in April 2010 to 79.5 at present, according to Indian Oil – a jump of 52%.
Nevertheless, in the same period, petrol consumption has increased from 12.8 million tonne in FY10 to 15.7 million tonne in FY13, and is estimated to reach 16.5 million tonne during FY14, according to Petroleum Planning and Analysis Cell. This translates into an annualised volume growth of 6.6%.
During the first five months of the current fiscal (April- August), petrol consumption grew 11.7% against the year-ago period even when regulated products like diesel, LPG and kerosene together witnessed a 1.4% drop year-on-year.
While consumers expressed their displeasure – at times, even anger – at rising prices, it didn’t deter them from using the fuel. Petrol prices at retail outlets in Mumbai have risen from 52.2/ litre in April 2010 to 79.5 at present, according to Indian Oil – a jump of 52%.
Nevertheless, in the same period, petrol consumption has increased from 12.8 million tonne in FY10 to 15.7 million tonne in FY13, and is estimated to reach 16.5 million tonne during FY14, according to Petroleum Planning and Analysis Cell. This translates into an annualised volume growth of 6.6%.
During the first five months of the current fiscal (April- August), petrol consumption grew 11.7% against the year-ago period even when regulated products like diesel, LPG and kerosene together witnessed a 1.4% drop year-on-year.
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