Petrol, Diesel Sales Drop As Winter Sets In

Petrol and diesel sales in India slumped in December as setting in of winter tapered demand, preliminary data of state-owned firms showed on Monday.

Petrol sales of the three state-owned firms, which control 90% of the fuel market, fell 1.4% to 2.72 million tonnes in December 2023 when compared to the year-ago period, while diesel demand dropped 7.8% to 6.73 million tonnes.

The onset of the winter season in northern India led to the tapering of air-conditioning demand.

Month-on-month petrol sales dropped 4.9% when compared to 2.86 million tonnes consumption in November. Diesel demand too was down 0.8% month-on-month when compared to 6.79 million tonnes in November.

Diesel is India's most consumed fuel, accounting for almost 40% of all petroleum product consumption. Transport sector accounts for 70% of all diesel sales in the country.

Fuel consumption has been on a see-saw over the last couple of months.

Demand for both petrol and diesel had risen in October but diesel consumption fell 7.5% in the following month.

Consumption of petrol during December 2023 was 7.1% more than in the COVID-marred December 2021 and 21.5% more than in pre-pandemic December 2019.

Diesel consumption was up 4.3% over December 2021 and 2.7% compared to December 2019.

Jet fuel (ATF) sales rose 3.8% year-on-year to 644,900 tonnes in December. But this was 6.5% lower than in December 2019 primarily because not all international flights have resumed after the pandemic.

ATF consumption was 25.5% more than in December 2021, but lower than 628,400 tonnes used in pre-COVID December 2019.

Month-on-month jet fuel sales were 2.6% higher than 628,400 tonnes in November 2023.

Cooking gas LPG sales were almost flat year-on-year at 2.73 million tonnes in December. LPG consumption was 8.1% higher than in December 2021 and 16.4% more than in pre-COVID December 2019.

Month-on-month, LPG demand rose 6.2% against 2.57 million tonnes of LPG consumption during November, the data showed.