Petrol sales in India remained almost flat in May 2024, while diesel sales continued to decline, even as election campaigns for the general elections reached their peak, according to data from state-owned oil marketing companies.
Traditionally, petrol and diesel sales surge during election campaigns as candidates extensively use vehicles to reach voters. However, this year has shown a different trend, as revealed by the public sector undertakings (PSUs).
The data indicated that the three state-owned firms, which control 90 per cent of the Indian fuel market, reported petrol sales of 1.367 million tonnes in the first half of May 2024, nearly identical to the 1.36 million tonnes consumed in the same period last year. Notably, petrol sales increased by 11 per cent on a month-on-month basis in the first half of May 2024 compared to April 2024.
Conversely, diesel sales declined by 1.1 per cent, totalling 3.28 million tonnes in the first half of May 2024. The decline follows a trend, with diesel demand dropping by 2.3 per cent in April and 2.7 per cent in March, indicating a continued slump in May.
The first half of May 2024 saw a severe heatwave across several parts of the country, which typically leads to increased fuel consumption due to higher use of air conditioning in cars. However, the anticipated surge in fuel sales did not materialise. The unexpected trend in fuel consumption occurred despite a Rs 2 per litre reduction in petrol and diesel prices in mid-March 2024, ending a nearly two-year hiatus in fuel rate revisions.
In April 2024, petrol sales rose by 11 per cent month-on-month, reaching 1.23 million tonnes compared to the first half of April 2024. Diesel demand in April increased by 4 per cent month-on-month, totalling 3.15 million tonnes in the same period.
