India’s diesel demand declined in June as extreme heat conditions demand declined in June due to extreme heat conditions in certain regions, that primarily refrained people from travelling. which limited travel, as per the data released by state-owned firms.
Diesel sales dropped by 3.9 per cent to 3.95 million tonnes during June 1 to 15 compared to the same period last year.The demand had earlier decreased by 2.3 per cent in April, 2.7 per cent in March, and 1.1 per cent in May.
However, Petrol sales of three state-owned firms, which dominate 90 per cent of the fuel market, remained nearly unchanged at 1.42 million tonnes in the first half of June compared to 1.41 million tonnes in the same period last year but month-on-month consumption decreased by 4.6 per cent.
Additionally, consumption of fuel has been falling month after month despite the traditional surge usually witnessed during elections. Moreover, factors such the summer harvest season and the scorching summer, which typically increase the demand for air conditioning in cars, were expected to boost fuel consumption. However, this year has not followed the usual trend.
Reduction in petrol and diesel prices by Rs 2 per litre in mid-March also did not brought any relief for oil companies as sales didn’t rise as expected.
Month-on-month petrol sales fell by 3.6 per cent compared to 1.47 million tonnes consumed during May 1-15. Diesel demand remained flat month-on-month against 3.54 million tonnes in the first half of May.
Diesel, which accounts for almost 40 per cent of all petroleum product consumption in India, is primarily used in the transport sector (70 per cent of all diesel sales) and is also the predominant fuel in the agriculture sector, including harvesters and tractors.
Jet fuel (ATF) sales increased by 2.3 per cent year-on-year to 331,000 tonnes during June 1-15, 2024. However, this was 4.5 per cent lower month-on-month compared to 346,500 tonnes in May 1-15.
Similar to petrol and diesel, ATF demand is now firmly above pre-Covid levels, with consumption being 10.1 per cent higher than during June 1-15, 2022, and 6.1 per cent higher than in June 1-15, 2020.
Cooking gas LPG sales were up by 0.1 per cent year-on-year to 1.24 million tonnes in June 1-15, 2024. However, LPG consumption dropped by 0.9 per cent compared to June 1-15, 2022, but was 32 per cent higher than in June 1-15, 2020.
Month-on-month, LPG demand fell by 5.2 per cent against 1.3 million tonnes consumed during May 1-15.
Diesel sales dropped by 3.9 per cent to 3.95 million tonnes during June 1 to 15 compared to the same period last year.The demand had earlier decreased by 2.3 per cent in April, 2.7 per cent in March, and 1.1 per cent in May.
However, Petrol sales of three state-owned firms, which dominate 90 per cent of the fuel market, remained nearly unchanged at 1.42 million tonnes in the first half of June compared to 1.41 million tonnes in the same period last year but month-on-month consumption decreased by 4.6 per cent.
Additionally, consumption of fuel has been falling month after month despite the traditional surge usually witnessed during elections. Moreover, factors such the summer harvest season and the scorching summer, which typically increase the demand for air conditioning in cars, were expected to boost fuel consumption. However, this year has not followed the usual trend.
Reduction in petrol and diesel prices by Rs 2 per litre in mid-March also did not brought any relief for oil companies as sales didn’t rise as expected.
Month-on-month petrol sales fell by 3.6 per cent compared to 1.47 million tonnes consumed during May 1-15. Diesel demand remained flat month-on-month against 3.54 million tonnes in the first half of May.
Diesel, which accounts for almost 40 per cent of all petroleum product consumption in India, is primarily used in the transport sector (70 per cent of all diesel sales) and is also the predominant fuel in the agriculture sector, including harvesters and tractors.
Jet fuel (ATF) sales increased by 2.3 per cent year-on-year to 331,000 tonnes during June 1-15, 2024. However, this was 4.5 per cent lower month-on-month compared to 346,500 tonnes in May 1-15.
Similar to petrol and diesel, ATF demand is now firmly above pre-Covid levels, with consumption being 10.1 per cent higher than during June 1-15, 2022, and 6.1 per cent higher than in June 1-15, 2020.
Cooking gas LPG sales were up by 0.1 per cent year-on-year to 1.24 million tonnes in June 1-15, 2024. However, LPG consumption dropped by 0.9 per cent compared to June 1-15, 2022, but was 32 per cent higher than in June 1-15, 2020.
Month-on-month, LPG demand fell by 5.2 per cent against 1.3 million tonnes consumed during May 1-15.