Petrol and diesel sales by India’s three state-run fuel retailers recorded robust year-on-year growth in July as delayed monsoon rains boosted demand from motorists and the agricultural sector, PTI reported, citing preliminary industry sales data.
According to the report, petrol sales by Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) increased 9.7% to 3.45 million tonnes in July, compared with 3.14 million tonnes in the corresponding month last year.
The sales volume was also 15.1% higher than July 2024 levels and 36.1 per cent above the volume recorded in July 2023. On a month-on-month basis, however, petrol consumption declined 1.1% from 3.48 million tonnes in June.
Diesel consumption rises on higher irrigation demand
According to PTI, diesel sales—the country’s largest consumed fuel and a key indicator of economic activity—rose 10.7% year-on-year to 7.12 million tonnes in July, up from 6.43 million tonnes a year ago.
The report said delayed and below-normal monsoon rainfall during the peak sowing season prompted farmers to rely more on diesel-powered irrigation pumps, resulting in higher fuel consumption.
Diesel sales were 11.5% higher than the corresponding period in 2024 and 12.7% above July 2023 levels. Compared with June, however, diesel consumption fell 9.2% from 7.85 million tonnes.
Delayed monsoon altered seasonal demand
Fuel consumption generally moderates with the onset of the monsoon as rainfall reduces the need for diesel-powered irrigation and slows vehicular movement.
However, the news agency reported that this year’s delayed arrival of monsoon rains increased irrigation demand, while the month-on-month decline was attributed to higher holiday travel in June during the school and college vacation period.
ATF demand records modest increase
Aviation Turbine Fuel (ATF) consumption rose 2.9% to 659,900 tonnes in July. The news agency reported that the volume was 2.3% higher than the 641,300 tonnes consumed in July last year and 16.5% above July 2023 levels. On a sequential basis, ATF sales declined 4.6% from 691,700 tonnes in June.
LPG sales continue to decline
LPG consumption remained under pressure, falling 17.4% to 2.37 million tonnes during July.
Industry officials told PTI that the decline was due to some commercial and industrial consumers switching to piped natural gas (PNG) following supply disruptions triggered by the West Asia crisis.
Although restrictions on LPG consumption in sectors such as hotels and restaurants were lifted last month, year-on-year demand remained weak as several users continued relying on PNG.
According to PTI, LPG consumption in July was 13.3% lower than the 2.73 million tonnes recorded in July 2024 and 1.1% below the 2.39 million tonnes consumed in July 2023.
(With inputs from PTI)