Petrol, diesel sales soar on weak monsoon rains
New Delhi, Aug. 3 -- Petrol and diesel sales by India's three state-run fuel retailers rose sharply in July as below-normal monsoon rainfall boosted fuel demand from farmers and motorists, preliminary industry sales data showed.
Petrol sales by Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) climbed 9.7% to 3.45 million tonnes during July, compared with 3.14 million tonnes in the corresponding period a year ago.
The volume was also 15.1% higher than 2.99 million tonnes sold during July 2024 and 36.1% above the level recorded in the same period of 2023.
Compared to June, however, petrol sales fell 1.1% from 3.48 million tonnes.
Diesel sales, a key indicator of economic activity in India, rose 10.7% year-on-year to 7.12 million tonnes in July from 6.43 million tonnes a year earlier.
Diesel is India's most widely used fuel, powering freight transport, agricultural machinery and irrigation. Below-normal monsoon rainfall boosted irrigation demand during the peak sowing season.
The volume sold in July was 11.5% higher than in the corresponding period of 2024 and 12.7% above the July 2023 consumption. On a month-on-month basis, diesel sales declined 9.2% from 7.85 million tonnes in June.
Fuel sales typically moderate with the onset of the monsoon, which reduces demand for running agricultural irrigation pumps as well as slows vehicular movement. But this year, the monsoon rains arrived late, which led to farmers using diesel to run pumps to irrigate farms.
Month-on-month, sales in July remain lower because in June holiday travel picks up due to school and college holidays.
Jet fuel (ATF) sales inched up by 2.9% to 659,900 tonnes during July -- volumes that were 2.3% more than the consumption of 641,300 tonnes in July 2024 and 16.5% more than 566,600 tonnes of July 2023.
Month-on-month, the consumption fell 4.6% from 691,700 tonnes of June.
Liquefied petroleum gas (LPG) sales continued to fall, dropping 17.4% to 2.37 million tonnes.
Industry officials said this was largely because some volumes have shifted to piped natural gas since the West Asia crisis.
LPG sales have been declining since the onset of the West Asia crisis disrupted supplies, leading to the imposition of consumption restrictions in sectors like hotels and restaurants.
The curbs were lifted last month, and sales saw an 8.6% rise to 2.18 million tonnes consumed in June but were lower year-on-year as some industrial and commercial users are now using piped natural gas for their needs, they said.
The July LPG consumption was 13.3% lower than 2.73 million tonnes of July 2024 and 1.1% lower than 2.39 million tonnes of July 2023....
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