During the first half of June, diesel sales in India witnessed a 6.7% decline. The decrease was attributed to the monsoon season’s arrival, which resulted in reduced demand in the agricultural sector. In comparison to the corresponding period last year, diesel sales dropped to 3.43 million tonnes from June 1 to June 15. Diesel is the most widely consumed fuel in the country.
The monsoon season usually leads to a decrease in diesel demand. This decrease is caused by several factors. One factor is the impact of rainfall on the off-take in the farm sector. Another factor is the disruption of infrastructure construction work due to the rain. Additionally, the movement of inter-state freight and passengers is hampered in various parts of the country during the monsoon.
Contrarily, petrol sales remained unchanged at 2.9 million tonnes during the first half of June. Petrol demand is less affected by the monsoon as it is predominantly used for transportation and other purposes.
The decline in diesel sales is anticipated to continue in the upcoming weeks as the monsoon progresses. However, sales are expected to rebound in the latter half of the year as the agricultural sector recovers and the demand for transportation rises.
Here are some of the factors that have contributed to the decline in diesel sales in June:
- The arrival of the monsoon has reduced demand for diesel in the agricultural sector.
- The monsoon has also disrupted infrastructure construction work and inter-state freight and passenger movement, which has further dampened demand for diesel.
- The price of diesel has been rising in recent months, which has also discouraged some consumers from using it
