Diesel sales drop in June as monsoon arrives

Demand for diesel, the most consumed fuel in the country - accounting for about two-fifths of the total demand, fell 3.7% to 7.1 million tonnes in June compared to the year-ago period

July 02, 2023 01:39 pm | Updated 01:39 pm IST - New Delhi

Image used for representational purpose only.

Image used for representational purpose only. | Photo Credit: Nagara Gopal

Diesel sales dropped in June as the arrival of monsoon cut demand in the agri sector and reduced vehicular movement, preliminary industry data showed.

Demand for diesel, the most consumed fuel in the country - accounting for about two-fifths of the total demand, fell 3.7% to 7.1 million tonnes in June compared to the year-ago period.

Diesel sales had soared 6.7% and 9.3% in April and May, respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat summer heat.

Month-on-month sales were almost flat compared to 7.09 million tonnes of diesel consumed in May.

Petrol sales, however, rose 3.4% to 2.9 million tonnes in June 2023 compared to the year-ago period. Sales were unchanged month-on-month, the data showed.

Also read: Diesel sales jump on agricultural demand

Petrol and diesel sales have been on the rise since the second half of March on the back of a pick-up in industrial and agriculture activity. But the arrival of monsoon has cooled temperatures and reduced demand for running diesel gensets to irrigate fields and cut down consumption in tractors and trucks in the first half of June.

Petrol consumption during June was 33.5% more than COVID-marred June 2021 and 20.6% more than pre-pandemic June 2019.

Diesel consumption was up 30% over June 2021 and 6.5% higher than in June 2019.

With the aviation sector booming with summer travellers, jet fuel (ATF) demand soared 6% to 587,300 tonne in June compared to the same period last year. It was 140% higher than in June 2021 but 4.6% lower than pre-Covid June 2019.

Month-on-month sales fell 2.4% against 6,02,000 tonnes in May 2023.

The Indian economy has gained pace with a pick-up in government and private capital spending. Manufacturing too has picked up, while the services sector has been robust.

The country's oil demand during the last few months was supported by strong industrial activity, industry officials said.

Cooking gas LPG sales were down 0.8% year-on-year to 2.27 million tonnes in June. LPG consumption was almost flat compared to June 2021 and 28.5% more than pre-COVID June 2019.

Month-on-month, the demand fell 3.4% compared to 2.36 million tonnes of LPG consumption during May, the data showed.

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