Petrol, diesel sales rebound on festival demand

India’s petrol and diesel consumption soared in November as the festive season reversed a fall in demand witnessed in previous months, preliminary data from state-owned firms showed on Friday.

While petrol sales showed a year-on-year increase, diesel had been a laggard since the monsoon, and November was the first month to see positive growth in consumption. Petrol sales of three state-owned firms, which control 90 per cent of the fuel market, soared 8.3 per cent to 3.1 million tonnes in November compared to 2.86 million tonnes of consumption in the same month last year. Diesel demand was up 5.9 per cent to 7.2 million tonnes.

Petrol and diesel sales had been tepid during the monsoon months as rains reduced vehicular movement and demand in the agriculture sector. However, petrol demand soared once the rains eased, while diesel consumption lagged year-on-year. Month-on-month, petrol sales were up 4.7 per cent compared to 2.96 million tonnes of consumption in October. Diesel demand was almost 11 per cent more than the 6.5 million tonnes of consumption in October.

Diesel is India’s most consumed fuel, accounting for almost 40 per cent of all petroleum product consumption. The transport sector accounts for 70 per cent of all diesel sales in the country. It is also the predominant fuel used in agriculture sectors, including in harvesters and tractors.