Petrol, diesel sales soar in July on weak monsoon rains

Petrol and diesel sales by India's three state-run fuel retailers, namely Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL), increased sharply in July 2026. The spike in sales of petrol and diesel came as below-normal monsoon rainfall boosted fuel demand from motorists and the agriculture sector.

PTI has reported that petrol sales by IOCL, BPCL, and HPCL, which three combined account for the lion's share of India's fuel retail market, climbed 9.7% year-on-year (YoY) to 3.45 million tonnes during the last month, as compared to 3.14 million tonnes in the corresponding month a year ago. It was also 15.1% higher than 2.99 million tonnes sold during July 2024 and 36.1% above the volume sold in July 2023. The month-on-month (MoM) sales of petrol, as compared to June this year, however, dropped marginally by 1.1% from 3.48 million tonnes.

On the other hand, diesel sales, a key indicator of economic activity in India, surged 10.7% YoY last month to 7.12 million tonnes, up from 6.43 million tonnes recorded in July 2025. It was 11.5% higher than recorded in the corresponding period of 2024 and 12.7% above the July 2023 diesel sales recorded in India. On a MoM basis, diesel sales declined 9.2% last month from 7.85 million tonnes recorded in June this year.

Diesel is India's most widely used fuel, powering freight transport, agricultural machinery and irrigation. The below-normal monsoon rainfall boosted transport activities across the country, while the irrigation demand too surged during the peak sowing season.

Petrol and diesel sales across India typically moderate with the onset of the monsoon, which reduces demand for running agricultural irrigation pumps as well as slows vehicular movement. However, this year, the monsoon rains arrived late, which led vehicular activities to remain nearly normal, and farmers used diesel to run pumps to irrigate farms.

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