Preliminary industry data reveals a decline in petrol and diesel sales during the first half of June. The arrival of the monsoon season has led to reduced demand in the agricultural sector and decreased vehicular movement. In particular, diesel demand, which accounts for a significant portion of fuel consumption in the country, has dropped by 6.7 percent to 3.43 million tonnes compared to the same period last year.
Previously, diesel sales had seen a significant increase of 6.7 percent and 9.3 percent in April and May respectively, driven by higher agricultural demand and increased usage of air conditioning in cars to combat the summer heat. When compared to the consumption of 3.31 million tonnes in the first half of May, diesel sales in the first half of June showed a 3.4 percent increase.
Similarly, petrol sales witnessed a decline of 5.7 percent to 1.3 million tonnes during the first half of June 2023 compared to the same period last year, with a month-on-month decrease of 3.8 percent.
The upward trend in petrol and diesel sales that started in the second half of March, supported by increased industrial and agricultural activity, has been impacted by the arrival of the monsoon season. The cooler temperatures have reduced the demand for diesel gensets for irrigation purposes and resulted in decreased consumption in tractors and trucks during the first half of June.
Comparing the consumption in June 1-15, petrol consumption has increased by 44.2 percent compared to the COVID-affected June 2021 period and 14.6 percent compared to the pre-pandemic June 1-15 in 2019. Diesel consumption has risen by 38 percent compared to the same period in 2021 and 8.8 percent compared to the first half of June 2019.
With the gradual reopening of the aviation sector, India's overall passenger traffic at airports has approached pre-COVID levels. This is reflected in the 2.6 percent increase in jet fuel (ATF) demand to 2,90,000 tonnes during June 1-15 compared to the same period last year. However, it remains 6.8 percent lower than pre-COVID June 1-15, 2019, and experienced a month-on-month decrease of 3.9 percent compared to May 1-15, 2023.
Industry officials attribute the recent growth in India's oil demand to robust industrial activity and an increase in government and private capital spending. Cooking gas (LPG) sales experienced a year-on-year decline of 1.3 percent to 1.14 million tonnes during June 1-15. However, LPG consumption showed a 3.3 percent increase compared to June 2021 and a significant 26.7 percent increase compared to pre-COVID June 1-15, 2019. On a monthly basis, LPG demand fell by 6.2 percent compared to the consumption of 1.22 million tonnes in the first half of May.
— With PTI inputs
First Published: Jun 18, 2023 1:02 PM IST
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