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Tuesday, September 24, 2013

62% petrol used by two-wheelers, 27% by cars

The government touted petrol as rich man's fuel to stop subsidy. But a latest survey shows 62% of the fuel flowing into the market is consumed by the aam aadmi's sawari — two-wheelers — while about 2% is being sold loose by people to earn their livelihood in remote villages and coastal areas. The survey, conducted by Nielsen for the oil ministry's think-tank — Petroleum Planning and Analysis Cell — shows cars accounting for about 27% of consumption, three-wheelers for 6% and about 2% being used for "other purposes" such as running generators etc.

The survey is part of the ministry's efforts at preparing a roadmap for managing the domestic oil market. Hamstrung by rising oil import bill — increasing 9.5% to Rs 347,432 crore in the April-August period — and subsidy estimates ballooning to Rs 180,000 crore, oil minister M Veerappa Moily is launching a fuel conservation campaign on 24th September as a way to check demand growth. 

Diesel, in contrast, follows a more predictable consumption pattern. The study says 66% of the fuel is used for transport, 19% for agriculture, more than 2% for powering mobile towers and the remaining for running back-up generators and construction equipment. Diesel consumption is estimated at 69 million tonnes. Light and heavy commercial vehicles - mini vans and trucks - and buses burn 38% of total diesel sold in the country.

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