Petrol, diesel sales fall in August as rains ebb demand

Published on: 16 Aug 2023 at 03:48 PM

Published by: PreetiMahajan

New Delhi, August 16

India’s petrol and diesel consumption fell in the first half of August from the previous month and a year ago, as monsoon rains hit mobility and slowed industrial activity, preliminary data of state-owned firms showed on Wednesday.

This is the second month in a row that fuel sales have fallen. The four months of monsoon generally see muted consumption.

Consumption of diesel, the most consumed fuel in the country accounting for about two-fifths of the demand, fell 5.7 per cent to 2.67 million tonnes from August 1 to 15, compared to the year-ago period.

Month-on-month sales fell 9.5 percent when compared with 2.95 million tonnes of diesel consumed in the first half of July.

Diesel sales typically fall in monsoon months as rains lower demand in the agriculture sector which uses the fuel for irrigation, harvesting and transportation.

Consumption of diesel had soared 6.7 per cent and 9.3 per cent 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.

Petrol sales fell 8 per cent to 1.19 million tonnes in the first fortnight of August, when compared with the same period last year.

Consumption had dropped 10.5 per cent in the first fortnight of July but picked up in the latter half. Sales were down 5.2 percent month-on-month, the data showed.

India’s economy has demonstrated remarkable resilience and is likely to have surpassed the performance of most major economies during the first half of 2023.

With steady and healthy economic activity and ongoing air travel recovery, India’s demand for oil products is anticipated to remain strong in the remainder of the fiscal, analysts said.

Consumption of petrol during August 1-15 was 20.6 percent more than in the Covid-marred first half of August 2021 and 25.6 percent more than in pre-pandemic August 2019.

Diesel consumption was up 26 percent over August 1-15, 2021, and 16.8 percent when compared with August 1-15, 2019.

With the continuing rise in passenger traffic at airports, jet fuel (ATF) demand rose 8.1 percent to 2,90,300 tonnes during the first fortnight of August as compared to the same period last year.

It was 66.7 percent more than in August 2021, but 4.1 percent lower than pre-Covid August 2019.