India’s gasoil consumption slowed in the first half of September from the previous month, staying below pre-COVID levels as a pick-up in monsoon rains hit mobility and demand for fuel from the agriculture sector, preliminary sales data showed.
Diesel sales by the country’s state fuel retailers came in at 2.1 million tonnes during Sept. 1-15, a decline of about 1.5 per cent from last year and down 6.8 per cent from the same period in 2019, the data showed.
State retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90 per cent of the country’s retail fuel outlets. Sales of gasoil, which accounts for about two-fifths of India’s overall refined fuel consumption, are directly linked to industrial activity in Asia’s third-largest economy.
India’s monsoon rains revived this month after a patchy spell in August. Local gasoil sales during Sept. 1-15 was down by about 0.9 per cent from the same period in August, the data showed.
Improved electricity supplies also contributed to a decline in demand for diesel.