Surge in Petrol and Diesel Sales in August Driven by Unseasonal Rains
Petrol and diesel sales saw a significant surge in August, driven by unseasonal rainfall. Sudden, heavy downpours led to a spike in fuel demand.
Sales of petrol and diesel gained momentum in August. Erratic rainfall patterns rapidly increased the demand for fuel. In many areas, rains were delayed or insufficient, forcing farmers to run diesel pumps more frequently for irrigation. Meanwhile, petrol sales also recorded a substantial increase.
According to data from the country's three state-owned oil companies—Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited—petrol sales rose by 9.1% year-on-year to 3.48 million tonnes in August. In August of the previous year, sales stood at 3.19 million tonnes. Petrol sales had also risen by 9.7% in July.
August sales were 14% higher than in August 2024 and 30.7% higher than in August 2023. Compared to July, petrol sales increased by approximately 1%.
10.2% Rise in Diesel Demand
Diesel sales in August rose by 10.2% year-on-year to 6.27 million tonnes, up from 5.69 million tonnes in August of the previous year. Diesel sales had increased by 10.7% in July. This marked the second consecutive month of a more than 10% rise in diesel demand.
Diesel is extensively used for freight transport, agricultural machinery, and irrigation. Due to delayed and uneven rainfall—with some areas receiving excess rain and others too little—farmers had to operate diesel pumps more frequently to irrigate their fields. However, diesel sales in August were 12% lower compared to the 7.13 million tonnes sold in July. Despite this, it remained 9.7% higher than in August 2024 and 6.3% higher than in August 2023.
Jet fuel sales also increased.
In August, sales of Aviation Turbine Fuel (ATF)—or jet fuel—rose by 5.6% year-on-year to 677,100 tonnes. It stood at 639,700 tonnes in August 2024. Compared to the 668,500 tonnes sold in July, ATF sales in August also saw a 1.3% increase.
