Petrol and diesel sales in India rose sharply in August as uneven monsoon rains pushed up demand from farmers and motorists. At the same time, LPG sales continued to decline, with some industrial and commercial users shifting to piped natural gas.
The sales data from the country’s three state-run fuel retailers — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — showed strong growth in petrol and diesel demand during the month.
Petrol sales increased 9.1% year-on-year to 3.48 million tonnes in August, compared with 3.19 million tonnes in the same month last year.
The rise follows a 9.7% increase in petrol sales in July.
August sales were also 14% higher than the 3.05 million tonnes recorded in August 2024 and 30.7% above the level seen in August 2023.
On a month-on-month basis, petrol sales increased by nearly 1% from July.
Diesel sales, which are closely watched as an indicator of economic activity, rose 10.2% year-on-year to 6.27 million tonnes in August. The three retailers had sold 5.69 million tonnes in August last year.
August was the second consecutive month in which diesel demand grew by more than 10%. Sales had risen 10.7% in July.
Diesel is widely used for freight transport, agricultural machinery and irrigation. Uneven monsoon rainfall increased the need for irrigation during the peak sowing period, leading farmers to use more diesel-powered pumps.
However, diesel sales fell 12% from July’s 7.13 million tonnes. Despite the monthly decline, August sales were 9.7% higher than the same month in 2024 and 6.3% above August 2023 levels.
Fuel demand usually slows after the monsoon arrives. Farmers need less diesel to operate irrigation pumps, while vehicle movement also tends to fall.
This year, however, the rains arrived late and remained uneven in several areas. As a result, farmers continued using diesel pumps to irrigate their fields, supporting diesel demand.
The unusual rainfall pattern also contributed to higher petrol demand from motorists.
Sales of aviation turbine fuel (ATF), or jet fuel, rose 5.6% year-on-year to 677,100 tonnes in August.
The volume was 5.9% higher than the 639,700 tonnes sold in August 2024 and 17.7% above the 575,400 tonnes recorded in August 2023.
ATF sales also increased on a monthly basis, rising 1.3% from 668,500 tonnes in July.
While petrol, diesel and jet fuel demand increased, LPG sales continued to decline.
LPG sales fell 16.1% year-on-year to 2.42 million tonnes in August. This follows a 17.4% decline in July.
Industry officials said some LPG demand has shifted to piped natural gas following the West Asia crisis.
LPG sales had been falling after the crisis disrupted supplies and led to restrictions on consumption in sectors such as hotels and restaurants.
The restrictions were lifted in June, when LPG sales rose 8.6% to 2.18 million tonnes. However, sales remained lower than a year earlier as some industrial and commercial users had shifted to piped natural gas.
August LPG consumption was 12.6% lower than the 2.77 million tonnes recorded in August 2024 and 0.3% below the 2.43 million tonnes sold in August 2023.
On a month-on-month basis, LPG sales rose 2.2% from 2.37 million tonnes in July.