Growing car market fuels petrol, diesel consumption
petrol and diesel rose 5.6% and 2.5%, respectively, month-on-month in September on increased vehicle sales and expanding economic activity, according to the state-run fuel retailers' sales data.
Sales of diesel for state-run oil companies, however, fell 3% year-on-year in September though sales of petrol rose 5.4%. Last year, private retailers cut their pump sales after public sector oil companies started selling fuel at below-market prices.
Now private players are boosting retail sales and regaining lost market share, which is showing up in a decline in diesel sales for state companies.
The government releases sales data for the entire industry, including private retailers, by the 10th of every month, which gives a more accurate picture of monthly fuel demand.
State companies' jet fuel sales rose 7.5% year-on-year but fell 0.4% sequentially, showing a substantial increase in air traffic from a year ago. Cooking gas consumption rose 6% year-on-year and expanded 7.3% sequentially.
Consumption of diesel typically declines in the monsoon months as rains affect demand in the agriculture sector, which uses the fuel for irrigation, harvesting and transportation.
