India's diesel sales surged in the first half of October as festival-season demand picked up, with preliminary data showing consumption by state-run retailers rising by roughly a quarter from both a month and a year earlier.
The numbers
State-run fuel retailers sold 3.65 million metric tonnes of diesel — about 27 million barrels — between October 1 and 15, up 26.4 per cent from the same period in September and 25.4 per cent from a year ago, according to preliminary industry data reported by Reuters.
The increase is being driven by heavier truck movement during the festival season, alongside agriculture demand. SP Singh, a senior fellow at the Indian Foundation of Transport Research and Training, said consumption was rising on agriculture demand and the festival-season pickup in transport, adding that wholesalers were stockpiling ahead of demand through Diwali in November.
Global prices push private retailers up
Global diesel prices have climbed to record highs in several markets, with supplies disrupted by the prolonged Iran war and the Russia-Ukraine conflict. India's state refiners — Indian Oil, BPCL and HPCL — continue to sell below market rates and have not revised pump prices since May.
The discount is costing the three refiners roughly Rs 20 per litre of diesel sold at retail, according to Prashant Vasisht of ICRA. Private retailers Nayara Energy and Reliance Industries have raised prices and are instead exporting fuel to capture higher global margins. Petrol and diesel at private outlets now cost about Rs 3 and Rs 5 per litre more than at state-run stations, shifting customers to the state retailers.
Sales of petrol by the state refiners were 1.55 million tonnes in the first half of October, up 0.9 per cent from the prior month. Truck sales also climbed, reaching 44,323 units in September, up 33.57 per cent from August.
Sources: Festive demand drives India's diesel sales in October, data shows — Reuters
The numbers
State-run fuel retailers sold 3.65 million metric tonnes of diesel — about 27 million barrels — between October 1 and 15, up 26.4 per cent from the same period in September and 25.4 per cent from a year ago, according to preliminary industry data reported by Reuters.
The increase is being driven by heavier truck movement during the festival season, alongside agriculture demand. SP Singh, a senior fellow at the Indian Foundation of Transport Research and Training, said consumption was rising on agriculture demand and the festival-season pickup in transport, adding that wholesalers were stockpiling ahead of demand through Diwali in November.
Global prices push private retailers up
Global diesel prices have climbed to record highs in several markets, with supplies disrupted by the prolonged Iran war and the Russia-Ukraine conflict. India's state refiners — Indian Oil, BPCL and HPCL — continue to sell below market rates and have not revised pump prices since May.
The discount is costing the three refiners roughly Rs 20 per litre of diesel sold at retail, according to Prashant Vasisht of ICRA. Private retailers Nayara Energy and Reliance Industries have raised prices and are instead exporting fuel to capture higher global margins. Petrol and diesel at private outlets now cost about Rs 3 and Rs 5 per litre more than at state-run stations, shifting customers to the state retailers.
Sales of petrol by the state refiners were 1.55 million tonnes in the first half of October, up 0.9 per cent from the prior month. Truck sales also climbed, reaching 44,323 units in September, up 33.57 per cent from August.
Sources: Festive demand drives India's diesel sales in October, data shows — Reuters
