Petrol, diesel sales surge as weak rains spur farm demand

New Delhi: Petrol and diesel sales by India’s three state-run fuel retailers rose sharply in July as below-normal monsoon rainfall boosted demand from farmers and motorists, preliminary industry data showed.

Petrol sales by Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp rose 9.7 per cent year-on-year to 3.45 million tonnes in July, from 3.14 million tonnes a year ago. Sales were 15.1 per cent above July 2024 levels and 36.1 per cent higher than July 2023.

However, they fell 1.1 per cent from June. Diesel sales, a key indicator of economic activity, jumped 10.7 per cent to 7.12 million tonnes from 6.43 million tonnes a year ago.

Below-normal rains boosted irrigation demand during the peak sowing season, prompting farmers to use diesel-powered pumps. Month-on-month, diesel sales declined 9.2 per cent.

Jet fuel (ATF) sales rose 2.9 per cent year-on-year to 659,900 tonnes in July, but fell 4.6 per cent from June. LPG sales continued to decline, dropping 17.4 per cent year-on-year to 2.37 million tonnes.