Diesel sales fall 3% during Sep

Diesel sales in India fell 3 per cent in September as a receding monsoon continued to dampen demand and slowed industrial activity in some parts of the country, preliminary data of state-owned firms showed.

While diesel sales by three state-owned fuel retailers fell year-on-year, petrol sales rose in September. Consumption of diesel, the most consumed fuel in the country -- accounting for about two-fifths of the demand, fell to 5.81 million tonnes in September from 5.99 million tonnes demand in the same period a year ago. Demand dipped by over 5 per cent in the first half of September, and consumption picked up in the second half as rains receded. Month-on-month sales were up 2.5 per cent when compared to 5.67 million tonnes of diesel consumed in August. 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.

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 were up 5.4 per cent to 2.8 million tonnes in September when compared to the same period last year. Consumption growth was almost flat in August. Sales in September were up 5.6 per cent month-on-month, the data showed. Macroeconomic data suggests a broad-based expansion across all sub-sectors of the economy, with the services sector continuing to post robust growth across financial, real estate and government services. India’s economy has demonstrated robust resilience and is likely to have surpassed the performance of most major economies during the first half of 2023.

Industry sources said with steady and healthy economic activity and the ongoing air travel recovery, India’s oil demand is projected to rise in the remainder of the year.