The petrol and diesel sales declined in the first half of October as the festive season started which was expected to increase consumption, preliminary data of state-owned firms revealed. Unlike last year’s packed October, this year, Durga Puja, Dusshera, and Diwali will be spread out over the second half of October and the first half of November. As such, preliminary data revealed that petrol and diesel sales dipped in the month so far, as compared to the same period last year.
Petrol sales by three state-owned fuel retailers reported a decline of 9 per cent on a year-on-year (YoY) basis, marking the first drop in two months. Diesel consumption also fell 3.2 per cent in the first half of October. This dip was largely due to the larger base of the previous year, reported PTI.
Petrol sales decreased to 1.17 million tonnes during the reporting period, against 1.29 million tonnes logged in the same period a year earlier, while the month-on-month decline in sales stood at 9 per cent. Diesel consumption also dipped to 2.99 million tonnes during the first half of October this year, down from 3.09 million tonnes reported for the same period a year earlier. Diesel sales, on a month-on-month basis, increased 9.6 per cent, against 2.73 million tonnes reported in the first half of September this year.
Generally, diesel sales decline in monsoon months due to muted demand in the agriculture sector which depends on fuel for irrigation, harvesting, and transportation. Further, rains also slow vehicular movements. This led to a fall in diesel sales in the last three months. Consumption was seen reviving after monsoons ended. Earlier this year, diesel consumption increased to 6.7 per cent in April and 9.3 per cent in May, as demand in agriculture picked up and usage of air conditioning increased to beat the heat. This pace started to dip in the second half of June as monsoon set in and has continued to fall ever since.
OPEC estimated that India’s oil demand would increase on average by 2,20,000 barrels per day credited to robust economic growth. Petrol consumption during the first half of October stood higher by 12 per cent compared to the pandemic-affected October 2021 period and 21.7 per cent higher than in October 2019. Diesel consumption in the reporting period stood 23.4 per cent higher than in October 2021 and 23.1 per cent higher than in October 2019.
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