Petrol sales surge 9.3% in January, diesel sees 3.1% growth

Petrol sales in India soared by 9.3 per cent in January 2024 compared to the same month a year ago, revealed the Petroleum Planning and Analysis Cell of the oil ministry. Diesel sales in the country too reportedly witnessed a year-on-year growth of 3.1 per cent last month, compared to the corresponding month of 2023.

This growth in sales of both petrol and diesel in January this year comes after a sluggish December, as people started returning from their holidays and started joining offices, resulting in commuting and economic activities picking up.

Between April and January of this financial year, petrol sales in India surged by 6.1 per cent compared to the same period of last financial year. During the April-January period of this fiscal, diesel sales across India reportedly witnessed a year-on-year growth of 4.3 per cent compared to the corresponding period of the last financial year.

The study also revealed that government-owned oil marketing companies like Indian Oil, Hindustan Petroleum and Bharat Petroleum have sold eight per cent more petrol and 1.8 per cent less diesel in January this year, compared to the same month a year ago. This reportedly marked a growth of market share for the private sector players in the segment.

The demand and sales of petrol in India are almost entirely dependent on the transport and mobility sector. Two-wheelers in India account for nearly 60 per cent of total sales of petrol in India. Besides that, rising demand for personal mobility and an increasing number of passenger vehicles on Indian roads are also contributing to the growth of petrol sales across the country.

Diesel is mainly used for long-haul transport. After a strong show during the festive season, in winter, sales of diesel tend to slump. However, the increasing economic activity helps in boosting the sales of this fuel across India.