September 17th 2023.
Diesel sales in India saw a decline for the second straight month in September. Preliminary data from state-owned firms show that diesel sales fell 5.8% to 2.72 million tonnes between September 1 and 15, when compared with the same period last year. This is the same proportion as the decline seen in the first half of August.
The fall in diesel sales is largely attributed to the rainy season, which has dampened demand in the agriculture sector. Diesel is commonly used for irrigation, harvesting, and transportation, and with rains slowing vehicular movements, the demand for diesel has dropped.
In contrast, petrol sales were up 1.2% to 1.3 million tonnes in the first two weeks of September. Compared to the first two weeks of July, petrol sales had dropped 10.5%. This was followed by a slight increase in the second half of July, although it fell again in the first half of August.
The growth in petrol and diesel sales is being driven by India's strong economic performance in the first half of 2023. This, along with the increase in passenger traffic at airports, has fueled the demand for jet fuel. Consumption of jet fuel in the first two weeks of September was up 6.8%, and 53.9% more than in September 2021.
LPG sales have also seen a steady rise, with consumption up 10.2% year-on-year to 1.36 million tonnes in September 1-15. This is 15.5% higher than the same period in 2021, and 35% more than pre-COVID September 2019. Month-on-month, LPG demand was up 12% compared to 1.21 million tonnes of LPG consumed during August 1-15.
Overall, diesel sales in India have seen a decline in the past two months due to the rainy season and its impact on the agriculture sector. However, sales of other fuels like petrol, jet fuel, and LPG have all seen a rise, driven by India's strong economic performance and the increase in passenger traffic at airports.
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