India's Diesel Consumption Drops for Second Month In July; Petrol Usage Steady, ATF Rises

India's diesel consumption fell for the second consecutive month in July, while the usage of petrol remained almost flat on a monthly basis, data from the Petroleum Planning and Analysis Cell of the Oil Ministry showed.

Countrywide consumption of diesel, mainly used by trucks and commercially-run passenger vehicles, dropped by almost 10 per cent on a provisional basis to 7.185 million tonnes (MT) in July 2024, compared to 7.984 MT in June 2024.

In the case of petrol, consumption in July this year stood at 3.286 MT, slightly down from 3.296 MT in June 2024.

However, the consumption of aviation turbine fuel (ATF) rose to 723,000 tonnes last month, driven by growing domestic and international travel. ATF consumption in June 2024 was 707,000 tonnes.

The decline in diesel and petrol consumption can be attributed to the monsoon season, which traditionally sees reduced mobility. During the June-September period, rains typically hinder movement.

Additionally, industrial and mining activities slowed down during the monsoon, which impacts the transport sector involved in ferrying minerals and goods, leading to decreased transport activity.

Notably, India's consumption of petrol and diesel reached record highs in May 2024. This surge was driven by increased demand for auto fuels due to campaigning and voting in the Lok Sabha elections, as well as the start of summer vacations.

Diesel consumption hit a record 8.408 MT in May 2024, surpassing the previous record of 8.217 MT in May 2023. Similarly, petrol usage rose to 3.463 MT, exceeding the previous high of 3.350 MT in May 2023.