Petrol, diesel sales fall as monsoon ebbs demand

India’s petrol and diesel consumption fell in the first half of July as fury of monsoon flipped travel plans and reduced the demand in the agri sector, preliminary industry data showed.

India's petrol and diesel consumption fell in the first half of July as fury of monsoon flipped travel plans and reduced the demand in the agricultural sector, preliminary industry data showed.

Demand for diesel, the most consumed fuel in the country accounting for about two-fifths of the demand, fell 15% to 2.96 million tonnes in July 1- July 15, compared to the year-ago period.

Consumption of diesel, which had soared 6.7% and 9.3% in April and May, respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat the summer heat, has tapered since the second half of June after the monsoon set in.

Month-on-month sales fell almost 20%, when compared with 3.68 million tonnes of diesel consumed in June 1- June15.

Petrol sales dropped 10.5% to 1.25 million tonnes during the first half of July 2023, when compared with the same period last year. Sales were down 10.8% month-on-month, the data showed.

Both the manufacturing and services sectors in India have been in expansion territory to support oil demand for over one year.

This led to petrol and diesel sales rising since the second half of March. But the arrival of monsoon has cooled temperatures and reduced demand for running diesel gensets to irrigate fields as well as cut down consumption in tractors and trucks.