Diesel sales fall 3.7% in June as monsoon sets in, petrol sales up 3.4%

Diesel sales dropped in June as the arrival of monsoon cut demand in the agri sector and reduced vehicular movement, preliminary industry data showed.

Demand for diesel, the most consumed fuel in the country, accounting for about two-fifths of the total demand, fell 3.7% to 7.1 million tonnes in June compared to the year-ago period.

Diesel sales soared 6.7% and 9.3% in April and May respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat the summer heat.

Month-on-month sales were almost flat compared to 7.09 million tonnes of diesel consumed in May.

Petrol sales, however, rose 3.4% to 2.9 million tonnes in June 2023 compared to the year-ago period. Sales were unchanged month-on-month, the data showed.

Petrol and diesel sales have been on the rise since the second half of March on the back of a pick-up in industrial and agriculture activity.

But the arrival of monsoon has cooled temperatures and reduced demand for running diesel gensets to irrigate fields and cut down consumption in tractors and trucks in the first half of June.

Petrol consumption during June was 33.5 per cent more than COVID-marred June 2021 and 20.6 per cent more than pre-pandemic June 2019.