Petrol, diesel sales surge in August as erratic monsoon lifts demand
Petrol and diesel sales by India's three state-run fuel retailers rose sharply in August, driven by erratic monsoon rainfall that increased fuel demand from farmers and motorists, according to preliminary industry sales data released on Tuesday, September 1.
Petrol sales by Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) increased 9.1 per cent year-on-year to 3.48 million tonnes in August, compared with 3.19 million tonnes in the same month last year.
The growth followed a 9.7 per cent year-on-year rise in petrol sales in July.
August petrol sales were also 14 per cent higher than the 3.05 million tonnes recorded in August 2024 and 30.7 per cent above the level seen in August 2023. On a month-on-month basis, petrol sales increased by nearly one per cent from 3.45 million tonnes in July.
Diesel sales, considered a key indicator of economic activity, rose 10.2 per cent to 6.27 million tonnes in August from 5.69 million tonnes a year earlier.
It was the second consecutive month of double-digit growth in diesel demand, with sales having risen 10.7 per cent in July.
Diesel is India's most widely used fuel and powers freight transport, agricultural machinery and irrigation equipment. Erratic rainfall during the peak sowing season boosted demand for irrigation, leading farmers to use diesel-powered pumps.
August diesel sales were 9.7 per cent higher than in the corresponding month of 2024 and 6.3 per cent above August 2023 levels. However, on a month-on-month basis, sales declined 12 per cent from 7.13 million tonnes in July.
Fuel consumption normally moderates during the monsoon as rainfall reduces the need to operate agricultural irrigation pumps and slows vehicular movement. This year, however, the rains arrived late, prompting farmers to rely on diesel-powered pumps for irrigation.
Jet fuel, or aviation turbine fuel (ATF), sales also increased 5.6 per cent to 677,100 tonnes in August. The volume was 5.9 per cent higher than the 639,700 tonnes sold in August 2024 and 17.7 per cent above the 575,400 tonnes recorded in August 2023.
On a month-on-month basis, ATF consumption rose 1.3 per cent from 668,500 tonnes in July.
In contrast, LPG sales continued to decline, falling 16.1 per cent to 2.42 million tonnes in August. LPG demand had dropped 17.4 per cent in July.
Industry officials attributed the decline largely to a shift in some consumption from LPG to piped natural gas following the West Asia crisis.
LPG sales have been declining since the crisis disrupted supplies and led to restrictions on consumption in sectors such as hotels and restaurants.
The curbs were lifted in June, when LPG sales rose 8.6 per cent to 2.18 million tonnes. However, consumption remained lower year-on-year as some industrial and commercial users shifted to piped natural gas, officials said.
August LPG consumption was 12.6 per cent lower than the 2.77 million tonnes recorded in August 2024 and 0.3 per cent below the 2.43 million tonnes consumed in August 2023.
On a month-on-month basis, LPG sales increased 2.2 per cent to 2.37 million tonnes in August, the data showed.
