Growing Car Market Fuels Petrol, Diesel Consumption

Growing Car Market Fuels Petrol, Diesel Consumption

Consumption of petrol and diesel in India increased in September, driven by higher vehicle sales and expanding economic activity. According to sales data released by state-run fuel retailers, petrol consumption rose by 5.6% and diesel consumption increased by 2.5% month-on-month. However, diesel sales for state-run oil companies fell by 3% compared to the same period last year. This decline can be attributed to private retailers regaining lost market share by cutting pump prices below market rates last year. The data also revealed that jet fuel sales for state companies rose by 7.5% year-on-year, indicating a significant increase in air traffic. Meanwhile, cooking gas consumption rose by 6% year-on-year and by 7.3% sequentially. Diesel consumption typically declines during the monsoon months, as the agriculture sector – a major user of diesel fuel for irrigation, harvesting, and transportation – is affected by heavy rains. Additionally, vehicular movements slow down during the rainy season. Private retailers’ efforts to boost retail sales have impacted diesel sales for state companies. The government releases sales data for the entire industry, including private retailers, by the 10th of every month, providing a more accurate picture of monthly fuel demand.

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TIS Staff

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