India fuel demand rises as petrol and diesel sales surge

India experienced a significant rise in petrol and diesel consumption during August, driven by increased mobility, agricultural needs, and freight movement. According to data from the Petroleum Planning and Analysis Cell and preliminary industry sales, petrol demand rose between 7.88 per cent and 9.1 per cent year-on-year.

Diesel, a critical indicator of economic activity, saw substantial growth. Reports indicate diesel consumption increased by approximately 6.46 per cent to 10.2 per cent year-on-year, reaching volumes between 6.27 million and 7.00 million tonnes. This surge is attributed to erratic monsoon rainfall, which prompted farmers to use more diesel for irrigation pumps during the sowing season, as well as sustained demand in construction and freight transport.

Other fuel trends included a 5.6 per cent increase in aviation turbine fuel (ATF) sales. In contrast, liquefied petroleum gas (LPG) consumption showed signs of weakening as demand shifts toward piped gas.