Petrol and diesel sales at India's three state-run fuel retailers rose sharply in July, helped by higher demand during the monsoon as below-normal rainfall led to increased fuel consumption by farmers and motorists, according to preliminary industry data.
Petrol sales at Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd rose 9.7% year-on-year to 3.45 million tonnes in July, up from 3.14 million tonnes a year earlier.
The volume was also 15.1% higher than July 2024 and 36.1% above July 2023 levels, though it slipped 1.1% from June's 3.48 million tonnes.
Diesel sales, widely tracked as a gauge of economic activity, climbed 10.7% year-on-year to 7.12 million tonnes from 6.43 million tonnes in July last year.
The fuel, used extensively in freight transport, farm machinery and irrigation, saw higher demand as delayed monsoon rains pushed farmers to rely on diesel pumps during the peak sowing season. July's diesel volumes were 11.5% above the same month in 2024 and 12.7% higher than 2023, though they fell 9.2% from June's 7.85 million tonnes.
Fuel consumption typically eases once the monsoon sets in, as irrigation pump usage and vehicular movement both slow. This year, however, the late arrival of rains meant farmers continued running pumps to water their fields even as the season progressed.
The month-on-month dip was also attributed to June typically seeing a seasonal bump from holiday travel during school and college breaks.
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Jet fuel sales edged up 2.9% to 659,900 tonnes in July, marking a 2.3% rise over July 2024 and a 16.5% increase from July 2023, though consumption fell 4.6% from June's 691,700 tonnes.
Liquefied petroleum gas (LPG) sales continued their downward trend, falling 17.4% to 2.37 million tonnes. Industry officials attributed the decline largely to a shift toward piped natural gas following the West Asia crisis, which had earlier disrupted LPG supplies and prompted consumption curbs in sectors such as hotels and restaurants.
Those restrictions were lifted last month, helping LPG sales rise 8.6% to 2.18 million tonnes in June, even though volumes remained lower year-on-year as some industrial and commercial users have permanently switched to piped gas.
July's LPG consumption was 13.3% below July 2024's 2.73 million tonnes and 1.1% lower than July 2023's 2.39 million tonnes.
(With PTI inputs)
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