Sales of petrol and diesel at Indian retailers fell in the first half of August from the previous month and a year earlier, according to preliminary data released on Wednesday, Industrial Activity and Mobility were impacted by monsoon rains.
Fuel demand in India, the world’s third largest oil importer and consumer, usually falls during the four-month rainy season, which starts in June, as parts of the country are hit by heavy flooding.
The country’s retailer sold 1.19 million metric tons of gasoline in the first half of August, down 5.2% from the same period in July and 8% over a year earlier, according to data. Gasoline, also called petroleum, is primarily used in passenger vehicles.
Sales of diesel, mainly used by trucks and other commercial vehicles, fell 9.5% from the previous month and 5.7% from a year earlier, to around 2.68 million tons during the first half of August, according to the data.
The rainy season also affects demand from the agricultural sector, with farmers using diesel generators for irrigation. Sales of diesel from general retailers were also impacted by a marginal reduction in fuel prices at private refinery outlets.
Diesel accounts for about two-fifths of total refined fuel consumption in India and is directly linked to industrial activity in Asia’s third-largest economy.
State-owned retailers Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd own about 90% of retail fuel outlets in the country.
Below is a table of preliminary fuel sales data in India, by volume in thousands of tonnes:
August Crude Fuel 1-15 % chg of % chg % chg vs
2023 July 1-15 year/year 2021
Gasoline 1193.3 -5.2 -8.0 20.6
Diesel 2677.5 -9.5 -5.7 26.0
Jet fuel 290.3 -2.1 8.1 66.7
Liquefied gas 1214.2 -2.0 3.7 11.9
petroleum gas
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