Fuel demand in India declines in July so far adding to oil's gloom: Report

The three biggest retailers sold 1.28 million tons of gasoline during July 1-15, down about 8% from the corresponding period in June, according to refinery officials with knowledge of the matter

petrol pump, petrol, diesel,
File photo: Bloomberg
Bloomberg
2 min read Last Updated : Jul 17 2022 | 7:45 PM IST
India’s gasoline and diesel sales during the first half of July dropped from last month as seasonal rains curtailed demand in the world’s third-biggest energy consumer, that could help keep a lid on oil prices.

The three biggest retailers sold 1.28 million tons of gasoline during July 1-15, down about 8% from the corresponding period in June, according to refinery officials with knowledge of the matter. Diesel sales fell almost 14% from last month, said the people, who asked not to be identified discussing unpublished data.

The retracement in India’s fuel demand adds pressure on the price of oil amid rising pessimism about a global economic slowdown that dragged it below $100 a barrel for the first time since early April. The softening of demand could also add to a supply glut in the region that’s curtailing the profits from processing gasoline and diesel.

This is the first monthly decline in sales in three months after resurgent economic activity, summer travel and increased use of diesel-fired generators during a severe heat-wave drove the South Asian nation’s fuel demand.

Fuel consumption in India typically declines in this time of the year because of the monsoon rains that lasts till September. It hampers trucking and construction activities, weighing on demand for diesel, the country’s most-used petroleum fuel.

India has so far received 13% higher than normal rains during the current monsoon season rainfall, according to data published by the India Meteorological Department on July 17.

Sales of liquefied petroleum gas, a cooking fuel, rose 8.3% from June, while aviation fuel fell 6.7%.

Spokespeople at the three retailers -- Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. -- couldn’t immediately comment. The companies together account for over 90% of Indian fuel sales.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :petrolDiesel prices

Next Story