Diesel sales decline in September, gasoline consumption rises

Preliminary data from state-owned companies showed that diesel sales in India fell for the second straight month in September, as rains dampened demand and slowed industrial activity in some parts of the country.

While diesel sales by three state-owned fuel retailers fell year-on-year in the first half of September, gasoline sales rose slightly.

Diesel consumption, the most widely consumed fuel in the country and accounting for about two-fifths of demand, fell by 5.8 percent to 2.72 million tons in the period from September 1 to 15, compared to the same period last year.

Consumption fell by a similar percentage in the first half of August.

Sales rose on a monthly basis by 0.9 percent, compared to 2.7 million tons of diesel consumed in the first half of August.

Diesel sales usually decline in the monsoon months as rain reduces demand in the agricultural sector, which uses the fuel for irrigation, harvesting and transportation. Rain also slows down vehicle movement.

Diesel consumption rose by 6.7 percent and 9.3 percent in April and May, respectively, as agricultural demand rose and car air conditioners were used to beat the summer heat. It began to decline in the second half of June after the start of the monsoon. It fell in the first half of July, but rose in the second two weeks of that month.

Gasoline sales rose 1.2 percent to 1.3 million tons in the first two weeks of September compared to the same period last year.

Consumption fell by 10.5 percent in the first two weeks of July, but rose in the latter half. It had fallen by 8 percent in the first half of August.

The data showed that sales in the first half of September rose by 8.8 percent on a monthly basis.

The Indian economy has shown remarkable resilience and is likely to outperform most major economies during the first half of 2023. This is helping fuel demand grow.

Gasoline consumption during September 1-15 was 29.2 percent higher than in the coronavirus-marred first half of September 2021, and 20.8 percent higher than in September 2019 before the pandemic.

Diesel consumption increased by 26 percent during the period from September 1 to 15, 2021 and 36.4 percent compared to the period from September 1 to 15, 2019.

With the continued rise in passenger traffic at airports, demand for aviation fuel rose by 6.8 percent to reach 2,92,500 tons during the first two weeks of September compared to the same period last year.

This number was 53.9 percent higher than in September 2021, but 5 percent lower than in September 2019 before COVID-19.

MoM jet fuel sales declined by 1.8 per cent compared to 2,98,000 tonnes in the period August 1-15, 2023.

LPG cooking gas sales rose 10.2 percent year-on-year to 1.36 million tons in the period from September 1 to 15. LPG consumption was 15.5 percent higher than it was from September 1 to 15, 2021, and 35 percent higher than before the coronavirus outbreak from September 1 to 15, 2019.

The data showed that demand for LPG rose on a monthly basis by 12 percent compared to the consumption of 1.21 million tons of LPG during the period from August 1 to 15.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)