New Delhi, Aug 2: The sale of Diesel and Petrol by India’s three state-owned fuel retailers rose sharply in July as below-normal monsoon rainfall boosted demand from farmers and motorists.
However, Liquefied Petroleum Gas (LPG) consumption continued to decline amid a growing shift towards piped natural gas (PNG) among industrial and commercial users.
Preliminary industry data showed that petrol sales by Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) climbed 9.7 per cent year-on-year to 3.45 million tonnes in July, compared with 3.14 million tonnes in the same month last year.
Diesel sales rose 10.7 per cent to 7.12 million tonnes, reflecting increased fuel demand during the delayed monsoon season.
Fuel consumption typically moderates during the monsoon as rainfall reduces the need for diesel-powered irrigation and slows road transport activity.
However, delayed and deficient rainfall this year forced farmers to rely more heavily on diesel pumps for irrigation, resulting in higher consumption of both petrol and diesel.
Despite the strong year-on-year growth, both fuels recorded a month-on-month decline. Petrol sales were down 1.1 per cent from 3.48 million tonnes in June, while diesel consumption fell 9.2 per cent from 7.85 million tonnes, partly due to seasonal factors following the summer holiday travel period.
Diesel Remains Key Indicator Of Economic Activity
Diesel, India’s most-consumed transport fuel, is widely regarded as a barometer of economic activity because it powers freight movement, agricultural machinery and irrigation equipment.
The July sales figures suggest sustained activity in agriculture and logistics despite weather-related disruptions. Compared with July 2024 and July 2023, diesel consumption remained significantly higher, underscoring resilient demand across key sectors.
Aviation Turbine Fuel (ATF) sales also recorded modest growth, rising 2.9 per cent year-on-year to 659,900 tonnes during July. However, compared with June, ATF consumption declined 4.6 per cent, reflecting normal monthly fluctuations in air travel demand.
LPG Consumption Continues To Decline
In contrast, LPG sales dropped 17.4 per cent year-on-year to 2.37 million tonnes in July, extending the downward trend seen in recent months.
The decline has largely been attributed to industrial and commercial consumers increasingly switching from LPG cylinders to piped natural gas, which is becoming more widely available across urban centres. The transition is reshaping India’s commercial fuel consumption pattern even as demand for transport fuels remains robust. (BVI)
