Festival Demand Drives India’s Diesel Sales Higher in October
India’s diesel consumption rose sharply in the first half of October, driven by increased truck movement during the festive season and stronger demand from the agriculture sector. Sales by state-run fuel retailers reached 3.65 million metric tonnes between October 1 and 15, marking a 26.4% increase from the same period in September and a 25.4% rise year-on-year, according to preliminary industry data reported by Reuters.
Higher transportation activity and inventory building ahead of Diwali in November have contributed to the surge in demand. Farmers are also using diesel-powered generators for irrigation, while increased electricity demand has added to fuel consumption. Truck sales climbed to 44,323 units in September, up 33.57% from August, according to industry figures cited in the report.
State-owned Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have kept retail fuel prices unchanged since May, reportedly absorbing losses of around ₹20 per litre on diesel sales. Meanwhile, private retailers Nayara Energy and Reliance Industries have raised fuel prices amid higher global margins. Petrol sales by state-run retailers also edged up 0.9% to 1.55 million tonnes during the first half of October compared with the same period in September.
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