Petrol, Diesel Sales Decline In December 2023

Petrol sales of the three state-owned fuel retailers dipped 1.4 per cent to 2.72 million tonne in December 2023, against the corresponding period a year earlier.

Petrol and diesel sales in India slipped in December 2023 on account of dampened demand as winter set in, preliminary data from state-owned firms revealed on Monday. Petrol sales of the three state-owned fuel retailers dipped 1.4 per cent to 2.72 million tonne in December 2023, against the corresponding period a year earlier. Notably, the three firms together control 90 per cent of the fuel market in the country. 

Meanwhile, the diesel demand during the reviewing period dropped 7.8 per cent to 6.73 million tonne, reported PTI. The three firms, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), stated that the beginning of the winter season in northern India led to a weakening in air conditioning demand. 

As such, the month-on-month petrol sales also declined 4.9 per cent, against a consumption of 2.86 million tonne in November 2023. Diesel demand during the reviewing period also dipped 0.8 per cent, against 6.79 million tonne consumed in November 2023. Diesel remains the most consumed fuel in India, and accounts for nearly 40 per cent of all petroleum product consumption. The transport sector contributes to 70 per cent of all diesel sales in the country.

The report noted that fuel consumption has been on a ‘see-saw’ during the last months. Demand for both petrol and diesel rose in October, however, the following month saw a decline in diesel consumption by 7.5 per cent. Petrol consumption during December 2023 stood 7.1 per cent higher than the COVID-affected month of December 2021, and 21.5 per cent higher than the pre-pandemic levels of December 2019.

Diesel consumption during the reviewing month stood up by 4.3 per cent over December 2021, and 2.7 per cent higher against December 2019.

Jet fuel (ATF) sales also increased 3.8 per cent on a year-on-year (YoY) basis to 644,900 tonne in December. However, this remained 6.5 per cent lower against the levels seen in December 2019, as all international flights haven’t resumed post-pandemic. 

ATF consumption in the month under review stood 25.5 per cent more against December 2021, however remained lower than 628,400 tonne in the pre-pandemic December 2019. The month-on-month jet fuel sales also stood 2.6 per cent higher than 628,400 tonne in November 2023.

The cooking gas LPG sales remained almost flat on a YoY basis at 2.73 million tonne in December 2023. LPG consumption stood 8.1 per cent higher, against December 2021, and 16.4 per cent higher than the December 2019 period. The month-on-month LPG demand increased 6.2 per cent against 2.57 million tonne consumed during November 2023, the data revealed.