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Government of India
Ministry of Petroleum & Natural Gas
28-January-2014 16:01 IST
70% of Diesel, 99.6 % of Petrol consumed by Transport Sector
M/s Nielsen submits All India Study Report to PPAC on sale of Diesel and Petrol
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13.15% of Diesel Consumed by private cars and UVs, 8.94% by commercial cars & UVs and 6.39% by 3-wheelers;  Trucks account for 28.25%, Buses 9.55% and Railways about 3.24%

 

Agriculture Sector uses 13% of Diesel; industry consumes 9.02% including industry gensets with 4.06% and Mobile Towers 1.54%

 

Two-wheelers top Petrol consumption with 61.42% followed by cars with 34.33% and             3-wheelers with 2.34%

 

 

An All India Study conducted by M/s Nielsen (India) Pvt Ltd for Petroleum Planning and Analysis Cell (PPAC) of Petroleum Ministry has thrown up interesting data about use of diesel and petrol sold across various states. As per the All India study report submitted to PPAC, 70% of diesel and 99.6% petrol is consumed in the transport sector alone.  Of the total diesel sale, the highest consumption of 28.48 is by cars, utility vehicles (UVs) and 3-wheelers.  It was also revealed that private cars & UVs account for 13.15%, commercial cars & UVs 8.94% and 3-wheelers 6.39% of the diesel sold in the country.

 

In case of Petrol, 99.6% is consumed in the transport sector.  Of this majority consumption of 61.42% is accounted for by Two-Wheelers while cars use 34.33% followed by 3-wheelers at 2.34%.  It was also revealed that in the States of Odisha, Bihar and Rajasthan, petrol consumption by two-wheelers exceeds 70%. 

Results of the Survey

The summarized aggregated results (including both retail and direct) sales for Diesel and Petrol are given below:-

 

Diesel

·        Transport sector is the major consumer of diesel accounting for 70% of the total Diesel sales.

·        The share of Diesel consumption by cars, utility vehicles and 3-wheeler sector is highest at 28.48%. Out of this, Private cars and UVs accounted for 13.15%, Commercial cars and UVs

8.94% and 3-wheelers 6.39% of the total Diesel consumption. Trucks (HCV/LCV) account for only 28.25% of the Diesel consumption. Buses consume about 9.55% and railways about 3.24%.

·        The agriculture sector is a major consumer of Diesel with about 13% of the total consumption accounted for by it. Within agriculture, the consumption is as follows: tractors (7.4%), pump-sets (2.9%) and agriculture implements (2.7%). Tractors have a higher consumption presumably because they are also used for non-agricultural purposes like transportation of construction material such as bricks, stones, mined sand, etc. and for transporting people in rural areas.

·        Diesel consumption by other segments is 17 per cent. This comprises of industry 9.02% (of which industry genesets is 4.06 % and others for industrial purposes is 4.96%), mobile towers (1.54%) and others (6.45%) comprising of gensets for non-industrial purposes, civil construction, etc.

 

Petrol

·        Petrol is almost entirely (99.6%) consumed by the transport sector.

·        Two-wheelers account for 61.42% of total Petrol sales while that by Cars is 34.33%. 3-wheelers account for only 2.34%.

·        In states like Odisha (82.3%), Bihar (75.2%) and Rajasthan (72.9%), consumption of Petrol by two-wheelers exceeds 70%.

·        The consumption by three-wheelers is very low in states like Delhi, Haryana, Gujarat and Odisha, where consumers have shifted to CNG or Diesel.

·        While pricing of Petrol was deregulated, Diesel prices are still being regulated, with under recoveries running at Rs. 8.47 per litre currently.  The total under recovery on Diesel during 2012-13 was Rs. 92,061 crores, constituting 57.2% per cent of the total under recoveries/subsidies on all petroleum products. The question as to where the Diesel is getting consumed is very relevant in this context.

·        Based on the above sector-wise consumption pattern of Diesel, it would mean that of the total under recovery of Rs. 92,061 crores on account of Diesel during 2012-13, about Rs. 12,100 crores went to owners of private cars and utility vehicles (UV), about Rs. 8,200 crores to commercial cars and UV, about Rs. 26,000 crores to HCV/LCV, about Rs. 8,800 crores to Buses, about Rs. 12,000 crores to agriculture sector and about Rs. 15,600 crores to other sector.

The detailed segment-wise consumption for Diesel is given in Annexure-I and for Petrol in Annexure-II.

The detailed zone-wise/ segment-wise consumption for Diesel (Retail sales only available) is given in Annexure-III and for Petrol (Retail sales only) in Annexure-IV.

 

The Survey

 

The Petroleum Planning & Analysis Cell (PPAC), an attached office of the Ministry of Petroleum & Natural Gas (www.ppac.org.in), in association with the Public Sector Oil Marketing Companies (OMCs), commissioned an “All India Study on Sectoral Demand of Diesel & Petrol” through M/s Nielsen (India) Private Limited to estimate the shares of various sectors/ segments in Diesel and Petrol sold through Retail Outlets (ROs) on State level and on all India basis.

 

The breakup of sectors/ categories is based on end-use of the fuels as mentioned below:

 

A.     Diesel:

i.         Transport with sub-categories such as Buses, HCVs, LCVs, Taxies & Utility Vehicles/ Cars (Personal/ Commercial Vehicles)

ii.       Agriculture with sub-categories such as Tractors, Pumping Sets, Tillers/ Harvesters/ Thrashers

iii.      Power Generation (Gensets)

iv.     Industrial Applications other than for power generation

v.       ‘Others’ for what is not included in any of the above categories.

A.     Petrol

i.         Cars ;  2-wheelers /3-wheelers;  SUVs ; Others

·        The survey was carried out in four rounds of three months each and the geographic spread of the study included 150 districts in 16 States, which covered more than 91% of the total retail sales of Diesel in the country. 

·        A sample of over 2,000 ROs chosen systematically from among above 16 States and 150 districts in each round of the study.   

 

Background

The total Diesel sold in the country during 2012-13 was 69,080 TMT and Petrol was 15,744 TMT. While Diesel constitutes 44% of total consumption of petroleum products in India, Petrol accounts for 10%.

 

Out of the total Petrol and Diesel sales in the country, more than 99% of the Petrol and 90% of the Diesel is sold through retail outlets (petrol pumps), for which there is no system of capturing the consumption data of the sectors and categories based on their end-use. However, the sector-wise consumption of Diesel sold directly by the Oil Marketing Companies (OMCs) is available. The data related to sectoral consumption of these products is an important input for any policy formulation.

 

***

 

Annexure-I

Results of the Survey

DIESEL (Retail + Direct)

Aggregated results for Diesel based on survey conducted by
Nielson (India) Pvt. Ltd. for Retail sales and data on Direct sales by Oil Companies

Sector

End-use segment

% Share

Cars/UVs (Passenger Vehicles)

Private

13.15

 

Commercial

8.94

 

3-Wheelers

6.39

 

 

 

Commercial Vehicles

Trucks: HCV/LCV

28.25

 

Buses/ State Transport Undertakings

9.55

Other Transport

Aviation/ Shipping

0.48

Railways

Railways

3.24

Sub Total Transport

70.00

Agriculture

Tractors / Agricultural Implements

13.00

 

Agricultural Pump sets

 

Sub Total Agriculture

13.00

Industry - Genset

Gensets

4.06

Industry – Other Purpose

Industry

4.96

Mobile Towers

Mobile Towers

1.54

Others

Crushers/ Construction/ Boring / Drilling/ Private Imports

6.45

Sub-Total

17.00

Grand Total

100.00

 

Annexure-II

Results of the Survey

As around 99.2% of all Petrol sales are from retail outlets, the segment-wise consumption for retail sales is considered for total consumption also.

 

PETROL (Retail)

Consolidated results for Petrol based on survey conducted by
Nielson (India) Pvt. Ltd. for Retail sales

Sector

End-use Segment

% Share

2/3 Wheelers

2-Wheelers

61.42

 

3-Wheelers

2.35

Sub Total 2/3 Wheelers

63.77

4 Wheelers

Cars

34.33

 

Utility Vehicles (includes SUVs etc.)

1.51

Sub-Total Others

35.84

Others

Others (include informal resale)

0.39

Grand Total

100.00

 

Annexure-III

Results of the Retail Survey – Zone-wise

DIESEL (Only Retail)

Aggregated results for Diesel based on survey conducted by
Nielson (India) Pvt. Ltd. for Retail sales

End Use Segment

North

East

West

South

All India

PASSENGER VEHICLES

Cars & UVs - Private

13.73

17.79

14.40

17.13

15.13

Cars & UVs - Commercial

10.02

9.37

11.17

9.96

10.29

3 Wheelers

3.83

8.47

10.48

7.65

7.36

COMMERCIAL VEHICLES

HCV/LCV and Buses

35.72

37.50

47.35

41.60

40.80

AGRICULTURE

Tractors

12.32

7.04

4.27

5.03

7.65

Agri Implements

5.09

2.28

1.88

2.26

3.13

Agri Pumpset

4.55

4.33

2.26

1.98

3.33

OTHERS

Industry - Genset

6.42

2.82

2.18

5.58

4.34

Industry - Other Purpose

3.17

1.72

0.98

2.44

2.11

Mobile Tower

1.82

2.57

1.45

1.60

1.77

Others (Genset for non-industry purposes) & Others

3.35

6.11

3.59

4.77

4.08

 

 

Annexure-IV

Results of the Retail Survey – Zone-wise

PETROL (Only Retail)

Aggregated results for Petrol based on survey conducted by
Nielson (India) Pvt. Ltd. for Retail sales

End Use Segment

North

East

West

South

All India

Cars

40.17

27.39

34.72

27.71

34.33

UVs

2.94

2.79

0.43

3.77

1.51

2-Wheelers

54.72

61.66

63.70

60.76

61.42

3-Wheelers

1.84

6.48

1.10

6.53

2.34

Others

0.33

1.69

0.06

1.22

0.39

 

***

RCJ