Rain Deficit and Vehicular Traffic Drive India’s Fuel Sales Higher in July

A deficit in rainfall has prompted farmers to rely heavily on diesel pumps for irrigation, which, combined with an uptick in vehicular movement, pushed India’s fuel sales to near double-digit growth in July. Public sector oil marketing companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), reported a significant surge in their overall fuel retail numbers.

On a year-on-year basis, diesel sales recorded a robust growth of 10.7 percent, reaching 71.2 lakh tonnes in July. Similarly, petrol sales grew by 9.7 percent to stand at 34.5 lakh tonnes. However, on a month-on-month comparison with June, the demand saw a slight contraction, with petrol sales dipping by 1.1 percent and diesel sales falling by 9.2 percent.

Aviation Turbine Fuel (ATF) sales also witnessed an upward trend, increasing by 2.9 percent to reach 6.6 lakh tonnes, signaling sustained demand in the air travel sector. In contrast, the sales of Liquefied Petroleum Gas (LPG) plummeted by 17.4 percent, limiting the volume to 23.7 lakh tonnes. Industry experts attribute this sharp decline to commercial and industrial consumers shifting toward Piped Natural Gas (PNG) following the Middle East crisis, along with the lingering impact of previous supply chain disruptions.