Kashmir spends Rs 370 cr every month on petrol, diesel

In what points to its booming automobile market, the monthly consumption of petrol and diesel in Kashmir has reached Rs 370 crore.

As per official estimates, on an average, diesel and petrol worth Rs 13 crore is consumed daily in Kashmir region (from Lower Munda to Sheeri Baramulla).

“Every day on an average around 724 kilo litres of petrol and 1290 Kl diesel are sold in Kashmir whose accumulated cost is pegged at Rs 12.9 crore,” official data reveals.

Talking to us, representative of Valley-based oil dealers association, Bilal Ahmad said that around Rs 370 crore business of petrol and diesel is recorded in Kashmir every month.

“On an average, petrol worth around Rs 5.3 crore and diesel Rs 7.4 crore per day are sold in Kashmir,” he said. He said the diesel consumption during summers goes up as it is used as fuel to water and spray motors in orchards.

Around 242 petrol/diesel retail outlets are operating in Kashmir Valley representing three Oil Marketing companies namely Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, and Indian Oil Corporation Limited.

The daily consumption of petrol and diesel in 2011 was Rs 10 crore which has reached up to Rs 13 crore due to increase in number of vehicles and prohibition on use of LPG as a fuel in vehicles.

Experts attributed the rise in petrol/diesel consumption to increase in number of vehicles in Kashmir, which they attribute to various factors such as increase in income, easy auto financing by banks, expansion of urban areas, etc. As per economic survey 2014-15, the public and private transport has increased manifold over the years in the state.

Experts believe the distance covered by people to reach homes and offices has increased with expansion of city and urban areas which has resulted in higher consumption of petrol and diesel.