Petrol sales rebound in festival season, diesel demand continues to drop

Petrol sales of three state-owned firms, which control 90 per cent of the fuel market, rose to 3.1 million tonnes during October when compared to 2.87 million tonnes of consumption last year

India's petrol consumption soared 7.3 per cent in October on the back of increased demand from the start of festive season but diesel sales were down 3.3 per cent, preliminary data of state-owned firms showed on Friday.

Petrol sales of three state-owned firms, which control 90 per cent of the fuel market, rose to 3.1 million tonnes during October when compared to 2.87 million tonnes of consumption in the same month last year.

Diesel demand dropped 3.3 per cent to 6.7 million tonnes.

While petrol sales were up mostly due to an increase in use of personal vehicles as the festive season kicked in, diesel demand dropped due to lower demand from the agriculture sector owing to the extended rainy season.

 

Petrol and diesel sales have been tepid during the last few months as monsoon rains reduced vehicular movement and demand for the agriculture sector.

Month-on-month petrol sales were up 7.8 per cent when compared to 2.86 million tonnes of consumption in September. Diesel demand was however almost 20 per cent more than 5.59 million tonnes of consumption in September.

Diesel is India's most consumed fuel, accounting for almost 40 per cent of all petroleum product consumption. The transport sector accounts for 70 per cent of all diesel sales in the country. It is also the predominant fuel used in agriculture sectors, including in harvesters and tractors.

Consumption of petrol during October was 10.5 per cent more than in October 2022, and 32.8 per cent more than in Covid-marred October 2020.

Diesel demand was up 1.7 per cent over October 2022, and 12.6 per cent compared to October 2020.

Jet fuel (ATF) sales rose 2.5 per cent year-on-year to 6,47,700 tonnes during October 2024. But this was 2.6 per cent lower month-on-month when compared with 6,31,100 tonnes of fuel sold in September.

Like petrol and diesel, ATF demand too is now firmly above pre-Covid levels.

ATF consumption was 11.5 per cent more than in October 2022, and 1.9 per cent more than in October 2020.

Cooking gas LPG sales were up 7.5 per cent year-on-year at 2.82 million tonnes in October 2024. LPG consumption was 13.1 per cent higher than in October 2022, and 19.1 per cent more than in October 2020.

Month-on-month, LPG demand was up 3.5 per cent against 2.72 million tonnes of LPG consumption in September, the data showed.