Diesel sales recover after Diwali slump, petrol sales rise marginally

Diesel sales across India in the first half of December have recovered from the steep decline it witnessed during Diwali, but sales were still lower than last year, claimed a PTI report. On the other hand, petrol sales by three state-owned fuel retailers rose by 0.7 per cent to 1.22 million tonnes in the first fortnight of December over the same period last year, claimed the report. The report further claimed that the recovery in diesel sales and marginal growth in petrol sales were due to increased vehicular movement in the first half of December.

Diesel is the most consumed fuel in India, accounting for almost 40 per cent of all petroleum product consumption in the country. The transport sector accounts for 70 per cent of all diesel sales in India. During Diwali, transport took a break due to festivities, which resulted in a slump in diesel sales. However, with the gradual surge in vehicular movements of transport vehicles, sales of diesel have recovered, but it is still on the lower side compared to the same period last year.

The report claimed that diesel consumption during the first 15 days of December 2023 was 3.15 million tonnes, up by 0.7 per cent from 3.13 million tonnes registered in the first half of November 2023. However, the demand for diesel in the first half of this month was reportedly 8.1 per cent down from 3.43 million tonnes sold in the same period of last year. Oil retailing companies claim that this slump was largely on account of some truckers taking a Diwali break to visit their families. On the other hand, petrol sales by three state-owned fuel retailers rose 0.7 per cent to 1.22 million tonnes in the first fortnight of December 2023 on increased personal vehicle movement.

Sales of petrol and diesel have witnessed a see-saw movement in the last couple of months. In the first half of October 2023, demand for petrol witnessed a slump of nine per cent compared to the same period last year. On the other hand, diesel sales witnessed a drop of 3.2 per cent during the same period. However, the beginning of the festive season with the Navratri and Durga Puja helped reverse the slump. Again in the first half of November, demand for diesel fell by 12.1 per cent compared to the same period a year ago.