Diesel Sales In September Fall 3%, Petrol Sales Inch Up 5.4%

Diesel consumption, the most used fuel in the country, in September, fell to 5.81 million tonnes (MT) from 5.99 MT in the same period a year earlier.

Diesel sales in India declined by 3 per cent in September owing to a receding monsoon affecting demand and slowed industrial activity in certain parts of the country, data from state-owned companies revealed. While three state-owned fuel retailers reported a decline in their diesel sales on a year-on-year (YoY) basis, petrol sales in September moved in an upward trajectory. 

Diesel consumption, the most used fuel in the country, in September, fell to 5.81 million tonnes (MT) from 5.99 MT in the same period a year earlier, reported PTI. While demand for diesel witnessed a dip of more than 5 per cent in the first half of September, it’s consumption recovered in the second half as rains receded from the country. Diesel sales inched up 2.5 per cent, on a month-on-month basis, against 5.67 million tonnes of fuel consumed in August. Generally, monsoon months dampen diesel sales due to a decrease in demand in the agricultural sector, which primarily uses the fuel for irrigation, transportation, and harvesting. 

Earlier in April and May, diesel consumption increased by 6.7 per cent and 9.3 per cent respectively, due to elevated demand from the agricultural sector along with the boost in usage of air conditioners to survive the summer heat. As the monsoon season started setting in during the second half of June, demand for diesel also started getting affected.

Notably, petrol sales increased in September by 5.4 per cent to 2.8 MT, compared to the same period a year earlier. August witnessed almost flat consumption growth, while sales in September increased 5.6 per cent month-on-month. 

Macroeconomic data indicated a broad-based expansion across all the sub-sectors of the economy, as the service sector maintained strong growth across financial, real estate, and government services. Further experts believe that the Indian economy has surpassed most major economies in terms of performance in the first half of 2023. The country’s healthy economy and recovery in air travel are estimated to help provide a boost to oil demand for the rest of the year. 

Global body OPEC projects India’s oil demand to grow on average by 2,20,000 barrels per day helped by it’s robust economic growth. Last month witnessed an increase of 19.3 per cent in petrol consumption against the Covid-affected month of September 2021 and an increase of 30 per cent compared to the pre-pandemic period of September 2019. Diesel consumption in September this year was up by 19 per cent compared to September 2021 and 11.5 per cent compared to September 2019. 

Further, the growth in air passenger traffic led to an increase in jet fuel (ATF) demand by 7.5 per cent to 5,96,500 tonnes during the last month on a YoY basis. This demand exceeded the numbers for September 2021 by 55.2 per cent, but remained 3.55 per cent lower than September 2019 statistics. 

Cooking gas LPG reported an increase of 6 per cent in sales at 2.67 million tonnes in September, on a YoY basis. This consumption was 11.4 per cent higher than in September 2021, and 23.3 per cent higher than in September 2019.