BackIndia's fuel demand drops in July compared to June month, here's why
Petrol recorded a 5% drop in consumption to 2.66 million tonnes in July against 2.8 million tonnes of consumption in June. Meanwhile, diesel consumption was impacted heavily with a decline of 13.1% to 6.44 million tonnes in July against 7.39 million tonnes of demand in the previous month.
PremiumIndian fuel demand dropped in July compared to the previous month as the onset of monsoon impacted demand in some sectors and restricted mobility. Petrol recorded a 5% drop in consumption to 2.66 million tonnes in July against 2.8 million tonnes of consumption in June. Meanwhile, diesel consumption was impacted heavily with a decline of 13.1% to 6.44 million tonnes in July against 7.39 million tonnes of demand in the previous month.
Consumption of petrol was however higher by 12.2% from July last year and higher by 31.2% from the same month in 2020. The petrol consumption picked up by 16.3% from pre-Covid July 2019.
As for diesel, the consumption of this fuel rose by 17.1% from July last year, and further increased by 32.4% from July 2022 and was up 5% against the pre-COVID sale of 6.11 million tonnes in July 2019.
As per a PTI report, the arrival and intensity of monsoon weigh heavily on diesel demand in the country and consumption traditionally is lower in July-September than in April-June. Rains restrict mobility and demand from the farm sector, which uses diesel in irrigation pumps and trucking, also drops with the onset of rains.
Further, the report said, auto fuel demand in June was supported by a surge in summer travel to colder areas of the country to escape from the heat and vacations during annual breaks at educational institutions.
On August 1, the petrol price was ₹96.72 per litre in New Delhi, while it was ₹106.03 in Kolkata, ₹106.31 in Mumbai, and ₹102.63 a litre in Chennai. On other hand, diesel was priced at ₹89.62 per litre in the national capital, while it stood at ₹92.76 in Kolkata, ₹94.27 in Mumbai, and R 94.24 in Chennai.
Moreover, the aviation turbine fuel (ATF) consumption surged by 79% to 5,33,600 tonnes in July compared to the same month last year but was down by 1.07% month-on-month. The demand increased 137.4% from July 2020 sales, however, declined by 14.1% from pre-Covid July 2019.
Meanwhile, despite a ₹50 per cylinder hike in prices, LPG consumption jumped by 4.14% to 2.46 million tonnes in July compared to the same month last year. The cooking gas demand was also higher by 8.7% from 2.26 million tonnes of LPG consumption during June this year. Notably, the demand rose 8.4% from July 2020 and higher by 11.9% against the pre-Covid level in July 2019.
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