India's Petrol, Diesel Sales Fall As Rains Hit Mobility

Sales of diesel and petrol by Indian state-run retailers fell in the first fortnight of August from a month earlier as monsoon rains curtailed demand for auto fuels, preliminary sales data showed.

Diesel sales at about 2.1 million tonnes during Aug. 1-15 were about 15.34% lower than the same period last month and about 7.9% lower than the corresponding period of 2019.

Diesel accounts for about two-fifths of India's overall refined fuel consumption and is directly linked to industrial activity in Asia's third-largest economy.

Easing restrictions by provincial governments as coronavirus infections subside had led to an increase in auto fuel demand last month.

Diesel accounts for about two-fifths of India's overall refined fuel consumption

However, heavy monsoon rains in some parts of the country caused large scale flooding in early August, reducing demand for diesel and petrol.

State-run Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of the country's retail fuel outlets.

Local sales of petrol for Aug. 1-15 declined on a monthly basis from the first time since May this year.

Petrol sales totalled 985,820 tonnes, a decline of 4.93% from the same period last month but up 3.74% from the corresponding period of 2019.