Petrol sales dropped to 1.17 million tonnes during the first half of October from 1.29 million tonnes a year earlier.
| Photo Credit: Manvender Vashist

Petrol and diesel sales fell in the first half of October ahead of the start of the festival season that is expected to boost consumption, preliminary data of state-owned firms showed.

Last year, Durga Puja/Dussehra as well as Diwali fell in October. This year the festival season, when consumption picks up, starts in the second half of October.

Petrol sales by three state-owned fuel retailers fell 9% year-on-year, the first drop in two months. Diesel consumption dropped 3.2%.

The decline was largely because of the larger base of last year.

Petrol sales dropped to 1.17 million tonnes during the first half of October from 1.29 million tonnes a year earlier.

Sales dropped 9% month-on-month as well.

Consumption of diesel, the most consumed fuel in the country — accounting for about two-fifths of the demand, dropped to 2.99 million tonnes during October 1 to 15 from 3.09 million tonnes a year back. Month-on-month sales were, however, up 9.6% compared with 2.73 million tonnes in the first half of September.

Diesel sales typically fall in monsoon months as rains lower demand in the agriculture sector which uses the fuel for irrigation, harvesting and transportation. Also, rains slow vehicular movements. This had led to a fall in diesel consumption in the last three months. Since the end of the monsoon, consumption has risen month-on-month.

Consumption of diesel had soared 6.7% and 9.3%in April and May, respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat the summer heat. It started to taper in the second half of June after the monsoon set in. It has continued to fall since.

Suppliers’ group OPEC sees India’s oil demand expanding on average by 2,20,000 barrels per day on the back of vigorous economic growth.

Consumption of petrol during October 1-15 was 12%more than in the COVID-marred October 2021 and 21.7% more than in pre-pandemic October 2019.

Diesel consumption was up 23.4% over October 1-15 in 2021 and 23.1% compared to October 2019.

With the continuing rise in passenger traffic at airports, jet fuel (ATF) demand rose 5.7% to 2,95,200 tonnes during first fortnight of October against the same period last year.

It was 36.5% more than in October 1-15, 2021, but 6.6% lower than pre-COVID October 2019.

Month-on-month jet fuel sales were almost 2% lower compared to 3,00,900 tonnes in September 1-15, 2023.

Cooking gas LPG sales were up 1.2% year-on-year at 1.25 million tonnes in the first half of October. LPG consumption was 10.6% higher than in October 1-15, 2021 and 153% more than in pre-COVID October 2019.

Month-on-month, LPG demand fell 7.5% against 1.36 million tonnes of LPG consumption during September 1-15, the data showed.

Representational file image
| Photo Credit: Bhagya Prakash K

India’s petrol and diesel consumption fell in the first half of July as fury of monsoon flipped travel plans and reduced the demand in the agricultural sector, preliminary industry data showed.

Demand for diesel, the most consumed fuel in the country accounting for about two-fifths of the demand, fell 15% to 2.96 million tonnes in July 1- July 15, compared to the year-ago period.

Consumption of diesel, which had soared 6.7% and 9.3% in April and May, respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat the summer heat, has tapered since the second half of June after the monsoon set in.

Month-on-month sales fell almost 20%, when compared with 3.68 million tonnes of diesel consumed in June 1- June15.

Petrol sales dropped 10.5% to 1.25 million tonnes during the first half of July 2023, when compared with the same period last year. Sales were down 10.8% month-on-month, the data showed.

Both the manufacturing and services sectors in India have been in expansion territory to support oil demand for over one year.

This led to petrol and diesel sales rising since the second half of March. But the arrival of monsoon has cooled temperatures and reduced demand for running diesel gensets to irrigate fields as well as cut down consumption in tractors and trucks.

For the year, India’s oil demand is forecast at 0.2 million barrels per day year-on-year, according to oil cartel OPEC’s monthly oil bulletin.

Consumption of petrol during July 1 to 15 was 12.5% more than COVID-marred July 2021 and 16.6% more than pre-pandemic July 1-15, 2019.

Diesel consumption was up 10.1% over July 1-15, 2021 but 1.1% less than in the first half of July 2019.

With the continuing rise in passenger traffic at airports, jet fuel (ATF) demand rose 6.1% to 301,800 tonnes during July 1 to 15, as compared to the same period last year.

It was more than double that of the first half of July 2021, but 5.9% lower than pre-COVID July 1-15, 2019.

Month-on-month jet fuel sales fell 6.7% when compared with 323,500 tonnes in June 1-15, 2023.

The country’s oil demand during the last few months was supported by strong industrial activity, industry officials said.

Cooking gas LPG sales were down 6.3% year-on-year to 1.27 million tonnes in July 1-15. LPG consumption was 6 per cent higher than in July 2021 and 3.7 per cent more than pre-COVID July 1-15, 2019.

Month-on-month, LPG demand was up 3.8% compared to 1.22 million tonnes of LPG consumption during the first half of June, the data showed.