Heavy rains dampen India’s gasoil, gasoline sales

Indian state retailers’ gasoline and diesel sales fell in July from the previous month as monsoon rains reduced mobility and construction work, according to preliminary sales data.

Fuel demand in India, the world’s third-biggest oil importer and consumer, typically falls during the four-month monsoon season beginning in June as parts of the country are affected by heavy floods.

Monthly gasoil sales in absolute terms in July fell about 13.7% to 6.15 million tonnes while gasoline sales slipped 4.6% to 2.76 million tonnes, the data showed.

On a daily basis, sales of gasoline in July fell about 7.7% from the previous month with gasoil down about 16.5%, according to Reuters calculations. Daily jet fuel sales were down 1.7% last month from June levels and cooking gas sales were up 4.5%, the calculation shows.

Monsoon rains also hit demand from the agriculture sector as farmers use gasoil-fired generators for irrigation. Diesel sales of state fuel retailers were also affected due to marginally lower prices of the fuel at outlets of private refiners.

Gasoil accounts for about two-fifths of India’s overall refined fuel consumption, and is directly linked to industrial activity in Asia’s third-largest economy.

State retailers Indian Oil Corp (IOC.NS), Hindustan Petroleum Corp (HPCL.NS) and Bharat Petroleum Corp Ltd (BPCL.NS) own about 90% of the country’s retail fuel outlets.