NEW DELHI: The pace of growth in India’s fuel consumption faltered in June as monsoon advanced through most parts of the country and holiday season tapered off, muting demand from the farm, construction and travel sectors after two months of sharp uptick.
Preliminary industry data shows diesel demand — a key indicator of economic activity — slipping into the red, with sales dropping 3.7% from a year ago.
But petrol consumption grew by about the same margin, buoyed by the concluding strains of holiday travel and people’s continued preference for personal vehicles.
Sequentially too June sales remained flat, with diesel slipping marginally by 0.4% from May and petrol remaining at the same level as before. This is largely due to seasonal factor when rains impact construction and transportation as well as use of irrigation pumps, while lower demand for power precludes use of generators.
Sales have moved into the slow lane after a growing at a blistering pace in May, with diesel sales rising by 9% and petrol by more than 10%. Consumption of both the transportation fuels had displayed signs of fatigue in March and April by dropping to single digit after consistently posting double-digit growth for months.
June jet fuel sales, however, remained in the positive to post a 6% growth from a year ago as holidaymakers and government events kept carriers buoyant. Consumption of LPG, or liquefied petroleum gas used mostly as domestic cooking fuel also dipped marginally by 0.8% on lower home cooking.
Sequentially, however, both fuels were in the negative in June. Jet fuel sales during the month under review were 2.4% lower than May, while LPG consumption fell 3.4% from a month ago.
Preliminary industry data shows diesel demand — a key indicator of economic activity — slipping into the red, with sales dropping 3.7% from a year ago.
But petrol consumption grew by about the same margin, buoyed by the concluding strains of holiday travel and people’s continued preference for personal vehicles.
Sequentially too June sales remained flat, with diesel slipping marginally by 0.4% from May and petrol remaining at the same level as before. This is largely due to seasonal factor when rains impact construction and transportation as well as use of irrigation pumps, while lower demand for power precludes use of generators.
Sales have moved into the slow lane after a growing at a blistering pace in May, with diesel sales rising by 9% and petrol by more than 10%. Consumption of both the transportation fuels had displayed signs of fatigue in March and April by dropping to single digit after consistently posting double-digit growth for months.
June jet fuel sales, however, remained in the positive to post a 6% growth from a year ago as holidaymakers and government events kept carriers buoyant. Consumption of LPG, or liquefied petroleum gas used mostly as domestic cooking fuel also dipped marginally by 0.8% on lower home cooking.
Sequentially, however, both fuels were in the negative in June. Jet fuel sales during the month under review were 2.4% lower than May, while LPG consumption fell 3.4% from a month ago.