Power Consumption Surges as Heat Wave Hits India

As the intense heat wave and rising humidity grip India with the onset of monsoon towards the end of the month, power consumption has surged by 9% in June. This surge is attributed to households and commercial establishments running cooling appliances for longer hours to beat the heat.

However, while power consumption soared, other sectors saw a mixed response. Petrol, jet fuel, and LPG sales posted moderate gains, while diesel remained in the slow lane due to a decrease in demand from the farm sector.

Government data revealed that power consumption stood at 152.3 billion units (BU) in June, an increase from 140.2 BU in the same period last year. The peak demand met, a crucial industry metric, also saw a 9.8% jump to 245.4 gigawatts (GW) from 223.2 GW in June 2023.

On the fossil fuels front, diesel demand was 1.3% lower than in June 2023, mainly due to reduced traction from the farm sector. However, there was a sequential increase of 0.4% compared to May.

Petrol consumption witnessed a healthy growth of 3.6%, driven by a rising share of fuel in new car sales and people’s preference for personal vehicles for holiday travel. However, on a monthly basis, the growth was a modest 1.9% as the holiday season wound down and monsoon disrupted travel in many regions.

Jet fuel sales rose by 4.3% annually, influenced by the fading holiday season fervor, although there was a 3.8% sequential dip compared to May. LPG sales saw a year-on-year increase of over 5%, with a marginal 0.6% rise from May.

In conclusion, the changing weather patterns and seasonal trends have significantly impacted power consumption and fuel sales in India, reflecting the dynamic nature of the energy sector in the country.