New Delhi: Petrol and diesel sales by India’s three state-owned fuel retailers rose sharply in August, with irregular monsoon rainfall supporting demand from the agricultural sector and motorists, preliminary industry data showed on Tuesday.
Petrol sales by Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) increased 9.1 percent year-on-year to 3.48 million tonnes in August, compared with 3.19 million tonnes in the same month last year.
Follow The PSUWatch Channel on WhatsApp
The growth follows a 9.7 percent increase in petrol sales in July. August sales were also 14 percent higher than the 3.05 million tonnes recorded in August 2024 and 30.7 percent above the corresponding month of 2023.
On a month-on-month basis, petrol sales rose marginally from around 3.45 million tonnes in July.
Diesel demand, a key indicator of activity in transport, agriculture and several other sectors, grew 10.2 percent year-on-year 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 sales, following a 10.7 percent rise in July.
Diesel is the country’s most widely consumed petroleum fuel and is extensively used by freight operators, agricultural machinery and irrigation pumps. Irregular rainfall during the peak sowing period supported demand for diesel-powered irrigation, particularly as the onset of monsoon rains was delayed in parts of the country.
August diesel sales were 9.7 percent higher than the year-earlier level and 6.3 percent above August 2023 consumption. However, on a month-on-month basis, sales declined 12 percent from 7.13 million tonnes in July.
Fuel demand normally moderates during the monsoon as rainfall reduces the need for diesel-powered irrigation and dampens road movement. This year, however, the delayed and uneven rainfall pattern appears to have altered the usual seasonal trend, particularly for diesel.
Aviation turbine fuel (ATF) sales also remained firm, rising 5.6 percent year-on-year to 677,100 tonnes in August. The volume was 5.9 percent higher than the 639,700 tonnes sold in August 2024 and 17.7 percent above the 575,400 tonnes recorded in August 2023.
ATF consumption increased 1.3 percent from 668,500 tonnes in July.
In contrast, LPG sales remained under pressure, falling 16.1 percent year-on-year to 2.42 million tonnes in August. LPG demand had declined 17.4 percent in July.
Industry officials attributed the weakness partly to a shift by some industrial and commercial consumers towards piped natural gas (PNG), following disruptions to fuel supplies during the West Asia crisis.
Follow PSU Watch on LinkedIN
LPG sales had come under pressure after the crisis disrupted supplies and led to restrictions on consumption in sectors such as hotels and restaurants. The restrictions were lifted in June, when LPG sales increased 8.6 percent to 2.18 million tonnes, although volumes remained below the year-earlier level.
According to industry officials, some industrial and commercial consumers have continued to use PNG instead of LPG, keeping demand subdued even after the restrictions were removed.
August LPG sales were 12.6 percent lower than the 2.77 million tonnes recorded in August 2024 and 0.3 percent below August 2023 consumption. On a month-on-month basis, however, LPG sales increased 2.2 percent from 2.37 million tonnes in July.
The August data thus points to a divergent trend in petroleum demand, with petrol and diesel recording strong growth while LPG consumption remains weak, and aviation fuel continuing to benefit from higher mobility.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)