Diesel sales witnessed a decline in the month of June as the onset of the monsoon season resulted in reduced demand in the agricultural sector and decreased vehicular movement, according to preliminary industry data. Diesel, being the most consumed fuel in the country and accounting for approximately two-fifths of the total demand, experienced a 3.7 percent drop in sales, amounting to 7.1 million tonnes compared to the same period last year.
In the preceding months of April and May, diesel sales had seen a significant increase of 6.7 percent and 9.3 percent, respectively. This surge was attributed to the rise in agricultural demand and the use of air-conditioning in cars to combat the summer heat. However, in June, sales remained nearly unchanged compared to May, with 7.09 million tonnes of diesel being consumed.
On the other hand, petrol sales observed a growth of 3.4 percent in June, reaching 2.9 million tonnes compared to the previous year. Sales remained consistent on a month-on-month basis. The data indicated that petrol and diesel sales had been on the rise since the latter half of March due to increased industrial and agricultural activity.
Nevertheless, with the arrival of the monsoon season, temperatures have cooled down, leading to a decrease in the demand for diesel gensets used for irrigation purposes and a reduction in consumption by tractors and trucks in the first half of June.
In terms of year-on-year comparison, petrol consumption in June 2023 was 33.5 percent higher than the pandemic-impacted June 2021, and 20.6 percent higher than the pre-pandemic June 2019. Diesel consumption, on the other hand, witnessed a 30 percent increase compared to June 2021 and was 6.5 percent higher than in June 2019.
The fluctuation in fuel sales highlights the influence of seasonal factors, particularly the monsoon, on the demand for diesel in the agricultural sector. As the rain provides natural irrigation, the reliance on diesel gensets decreases, resulting in reduced consumption. Similarly, reduced vehicular movement during heavy rainfall also contributes to the decline in diesel demand.
The data indicates the importance of understanding the dynamics of various sectors and their correlation with fuel consumption. As the monsoon continues and its impact on diesel sales persists, industry experts will closely monitor the fluctuations in demand and adjust strategies accordingly. Additionally, the increase in petrol sales signifies a continued recovery in the economy, with consumption surpassing both pandemic and pre-pandemic levels.
Overall, the drop in diesel sales in June reflects the seasonal nature of demand in the agricultural sector and reduced vehicular movement during the monsoon season. As the weather patterns continue to influence fuel consumption, stakeholders in the industry will adapt their approaches to navigate these fluctuations and ensure a steady supply of fuel to meet the evolving needs of the market.
