State-owned enterprises reported that diesel sales in India decreased 3% in September as a receding monsoon lowered demand and hampered industrial activity in several regions. In September, three state-owned fuel shops sold less diesel but more petrol.
Diesel, the most utilized fuel in the country, declined to 5.81 million tonnes in September from 5.99 million tonnes a year earlier. First-half September demand dropped by almost 5%, but second-half September demand rose as rains subsided.
Compared to 5.67 million tonnes of fuel burned in August, sales rose 2.5%. Monsoons reduce diesel sales in agriculture, which needs it for irrigation, harvesting, and transportation. Also, rain slows traffic.
As agricultural increased and cars turned on air conditioning to beat the summer heat, diesel use rose 6.7% and 9.3% in April and May. It tapered in the second half of June after the monsoon. Sep petrol sales rose 5.4% to 2.8 million tonnes over previous year. August consumption increase was nearly flat. Data showed September sales up 5.6% month-over-month.
Macroeconomic data shows widespread growth throughout all subsectors of the economy, with financial, real estate, and government services growing strongly. India’s economy is resilient and likely outperformed other major economies in the first half of 2023.
Industry sources expect India’s oil demand to rise in the rest of the year due to strong economic growth and air travel recovery. OPEC expects India’s oil demand to rise by 2,20,000 barrels per day due to strong economic development.
September gasoline consumption was 19.3% higher than in COVID-19-stricken September 2021 and 30% higher than pre-pandemic September 2019. Diesel usage rose 19% from September 2021 and 11.5% from September 2019.
Jet fuel (ATF) demand grew 7.5% to 5,96,500 tonnes in September due to rising airport passenger volume. It was 55.2% higher than September 2021 but 3.55% lower than pre-COVID September 2019.
Sales of jet fuel were practically unchanged from 5,99,100 tonnes in August 2023. September LPG sales rose 6% to 2.67 million tonnes. LPG consumption was 11.4% higher than September 2021 and 23.3% higher than pre-COVID September 2019.
The data revealed that August LPG demand rose 7.3% to 2.49 million tonnes.
Diesel sales in India fell 3.5% in September due to a retreating monsoon, slowing industrial output. Petrol sales rose, while diesel use fell to 5.81 million tonnes from 5.99 million tonnes a year earlier. Demand dropped over 5% in the first part of September but rose in the second half once rains stopped. Petrol sales rose 5.4% to 2.8 million tonnes, while monthly sales rose 2.5% from August. India’s economy showed resiliency and is anticipated to outperform most major nations in 2023’s first half. Due to economic growth and air traffic recovery, oil demand could climb throughout the year.