August sees further decline in India's fuel demand, mainly due to monsoon

16 Aug 2022 , 12:37 PM

According to preliminary industry statistics released on Tuesday, diesel demand in India decreased for a second consecutive month as the arrival of the monsoon reduced consumption in crucial industries like agriculture.

The demand for gasoline and diesel decreased month over month in July. While the first half of August has seen essentially no change in the amount of gasoline consumed, the demand for diesel, the most popular fuel in the nation, fell 11.2% from August 1 to 15, from 3.17 million tonnes to 2.82 million tonnes.

The country’s demand for diesel is greatly influenced by the monsoon’s arrival and intensity, and generally, consumption is lower in July and August than it is in April and June. Mobility is limited by the monsoon, and when rains begin, so does demand from the agricultural industry, which depends on fuel for irrigation pumps and haulage.

However, due to robust economic development and a low baseline at the same time in 2021, when the second wave of COVID-19 had an influence on the economy, diesel consumption increased by 32.8% year over year.