The rising popularity of electric vehicles (EVs) and hybrid vehicles is impacting India’s consumption of petrol and diesel, which accounts for more than 60 per cent of the refined products usage in the world’s third-largest crude oil consumer.
Top management at the State-run Bharat Petroleum Corporation (BPCL), operating over 22,000 fuel dispensing stations, pointed out that November and December 2024 in FY25 have been “outlier” months with petrol and diesel sales showing a rising trend.
“Auto fuel sales in FY25 (so far) are quite erratic. Until October, it was almost zero (flat), but suddenly in November, it has almost risen 8-9 per cent and in December also, it has behaved in the same fashion. In January, it is again going back to almost the same old trend (flat). So it is a little erratic,” Sukhmal Kumar Jain, Director – Marketing, BPCL, said in a telephonic interaction with businessline.
Erratic sales
On reasons behind the “erratic” sales, he pointed at late monsoon withdrawal and, to some extent, marriage season (after November 15). BPCL is also analysing sales of alternate fuel vehicles, which includes EVs and hybrids.
“Maybe a little more clarity will come once we close the financial year. How this auto fuel sales trend will continue, in the immediate future and long term also,” Jain explained.
During the April-December period in FY25, India consumed around 30 million tonnes (mt) petrol and around 68.25 mt diesel.
Jump in profits
BPCL CMD G Krishnakumar said the oil marketing company (OMC) reported a “significant” jump in net profit from ₹2,397 crore in Q2 FY25 to ₹4,649 crore in Q3 FY25, on a standalone basis, driven by improved refining and marketing margins as well as sales growth.
“If you compare our refining side q-o-q, we have performed well because refinery margins have gone up from $4.41 to $5.6 per barrel. Marketing margins improved significantly during this quarter as crude prices are on a lower side and we could get to higher marketing margins. Besides, we have a volume growth of around 4 per cent,” he noted.
On impact of the US sanctions on Russia, Krishnakumar said, “Due to sanctions on majority of vessels, Russian cargoes are not flowing to markets. It may take time. They may find new vessels. Some new traders may come to the market. We feel it is a temporary phenomena. We may not get full cargoes from Russia. After a certain point of time, Russian cargoes will come back to the market.”
