Diesel sales post sharpest monthly fall since May as rain hits demand – Times of India
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NEW DELHI: India’s August diesel sales recorded the sharpest monthly fall since May as the monsoon hit demands from the farm, trucking and construction sectors, but petrol consumption continued to grow as people preferred personal vehicles after Covid restrictions were lifted.
Industry executives played down the dip in diesel sales, describing it as a seasonal phenomenon and exuding confidence demand will be back to pre-Covid level within a quarter as the fundamentals are intact.
True to that estimation, market data show August diesel sales were 16% more than the same month in 2020, but 9.7% down from the pre-pandemic 2019, the general resistance level shown by the largest-selling fuel.
Data further show an uptrend for petrol sales, which shot past the August 2019 levels by nearly 5%, and posted a 2.5% growth over July.
Jet fuel sales rose 20% over July with states easing curbs on flights. The sales were, however, 45% lower than August 2019. On a monthly basis, the August jet fuel sales were 42% more than July.
Liquid Petroleum Gas sales too fell marginally: 1.7% lower than July and 2.4% less than August 2019. But seen against the low base of 2020, sales were 1.8% more.
“Monsoon affects activities across the country. Floods in parts disrupt freight movement and fuel consumption in general. Construction activity also takes a break or slows down as does other infrastructure projects. Good rain obviates the need for running diesel pumps for irrigation, reducing demand from the farm sector. Consumption starts picking up from September-end-October once rains recede,” an executive at a state-run fuel retailer said.
Industry executives played down the dip in diesel sales, describing it as a seasonal phenomenon and exuding confidence demand will be back to pre-Covid level within a quarter as the fundamentals are intact.
True to that estimation, market data show August diesel sales were 16% more than the same month in 2020, but 9.7% down from the pre-pandemic 2019, the general resistance level shown by the largest-selling fuel.
Data further show an uptrend for petrol sales, which shot past the August 2019 levels by nearly 5%, and posted a 2.5% growth over July.
Jet fuel sales rose 20% over July with states easing curbs on flights. The sales were, however, 45% lower than August 2019. On a monthly basis, the August jet fuel sales were 42% more than July.
Liquid Petroleum Gas sales too fell marginally: 1.7% lower than July and 2.4% less than August 2019. But seen against the low base of 2020, sales were 1.8% more.
“Monsoon affects activities across the country. Floods in parts disrupt freight movement and fuel consumption in general. Construction activity also takes a break or slows down as does other infrastructure projects. Good rain obviates the need for running diesel pumps for irrigation, reducing demand from the farm sector. Consumption starts picking up from September-end-October once rains recede,” an executive at a state-run fuel retailer said.
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