Lesser truck movement in November saw diesel sales fall 7.5 per cent

Diesel consumption in India recorded a decline of 7.5 per cent in November, owing to the fall in demand in the transportation sector as truckers largely remained out of action during recent festive days, the preliminary data of state-owned oil marketing companies revealed on Friday. Diesel consumption declined from 7.33 million tonnes in November 2022 to 6.78 million tonnes in November 2023.

As per industry officials, the fall in diesel consumption was caused by less freight movement as truckers took time off to be with their families for celebrating Diwali. According to officials, the demand for diesel, will once again see an increase during the present month, when truckers return to work.

The high demand for diesel in India, makes it the most consumed fuel, accounting for almost 40 per cent of all petroleum products' consumption. As much as 70 per cent of the diesel sold in India is used as fuel by the transport sector. Apart from sharp decline in diesel sales, petrol consumption too fell by 9 per cent year-on-year in the first half of October and diesel sales by 3.2 per cent but the festive season helped reverse the trend in terms of petrol consumption. 

The demand for petrol had fallen 9 per cent year-on-year in the first half of October and diesel sales by 3.2 per cent but the start of Navratri/Durga Puja celebrations helped in reversing the trend. Diesel demand fell 12.1 per cent in the first half of November and recovered marginally in the second half.

Diesel consumption typically falls during the monsoon as its demand goes down significantly in the agricultural sector, where farmers use this fuel for multiple purposes. This is the reason for fall in diesel sales in the last three months during the monsoon. With an end to three-month-long rain spell, a surge in month-on-month consumption of diesel was seen. 

Diesel consumption had grown by 6.7 per cent in April and 9.3 per cent in May, as demand from agriculture rose significantly. More usage of air conditioners to put up with soaring mercury also contributed to the demand. With falling temperature and onset of monsoon in the second half of June, the demand for diesel started falling down.

(With PTI inputs)