Petrol, diesel consumption jumps in Oct as festive spending surges: Report

Petrol and diesel consumption rose in October as festive spending reversed the initial decline in sales, buoying growth, preliminary data of state-owned firms showed on Wednesday.

Auto fuel sales declined in the first half of October but rose sharply in the second compared to the year-ago priod, helping companies post a decided growth rate for the month.

Petrol sales by three state-owned fuel retailers rose 3 per cent in October to 2.87 million tonnes while diesel consumption was up 5 per cent at 6.91 million tonnes.

Consumption of petrol had fallen 9 per cent year-on-year in the first half of October and diesel sales by 3.2 per cent. But the start of Navratri/Durga Puja celebration helped reverse the trend.

Last year, Durga Puja/Dussehra as well as Diwali fell in October. This year the festival season, when consumption picks up, started in the second half of October.

Petrol consumption in the first half of October was 1.17 million tonnes and in the second half, it was 44 per cent more.

Consumption of diesel, the most consumed fuel in the country -- accounting for about two-fifths of the demand, in the first half at 2.99 million tonnes while sales in the second fortnight were 3.91 million tonnes. Month-on-month sales were up 18.7 per cent when compared with 5.82 million tonnes in September.

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. This led to a fall in diesel consumption in the last three months. And once the monsoon ended, consumption rose month-on-month.

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. The fall has now been reversed.

Consumption of petrol during October was 15.6 per cent more than in the COVID-marred October 2021 and 25.2 per cent more than in pre-pandemic October 2019.

Diesel consumption was up 17.7 per cent over October 2021 and 19.4 per cent compared to October 2019.

With the continuing rise in passenger traffic at airports, jet fuel (ATF) demand rose 6.9 per cent to 621,200 tonnes during October against the same period last year.

It was 38.3 per cent more than in October 2021, but 5.9 per cent lower than pre-COVID October 2019.

Month-on-month jet fuel sales were almost 3 per cent higher compared to 603,600 tonnes in September 2023.

Cooking gas LPG sales were up 5.3 per cent year-on-year at 2.49 million tonnes in October. LPG consumption was 2.8 per cent higher than in October 2021 and 11.7 per cent more than in pre-COVID October 2019.

Month-on-month, LPG demand fell 1.9 per cent against 2.67 million tonnes of LPG consumption during September, the data showed.