70% of Diesel, 99.6 % of Petrol consumed by Transport Sector

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.

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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