India's Fuel Frenzy: Festive Surge and Agricultural Slump

India's petrol consumption surged 7.3% in October, driven by the festive season, while diesel sales dipped 3.3% due to decreased agricultural demand. Petrol sales by major state firms rose to 3.1 million tonnes, with diesel dropping to 6.7 million tonnes. Jet fuel and LPG also saw significant growth over previous years.

India's petrol consumption witnessed a significant rise of 7.3% in October, fueled by increased demand during the onset of the festive season. In contrast, diesel sales saw a decrease of 3.3%, primarily due to reduced demand from the agricultural sector following an extended rainy season, according to preliminary data from state-owned firms released on Friday.

The data revealed that petrol sales by the three major state-owned firms, which dominate 90% of the market, climbed to 3.1 million tonnes, compared to 2.87 million tonnes in the same month last year. This surge is attributed largely to the increased use of personal vehicles amid festive celebrations.

Despite the downturn in diesel sales, the month-on-month comparison shows a rebound, with petrol sales up 7.8% and diesel demand almost 20% higher than in September. Diesel continues to be a critical fuel, constituting 40% of India's petroleum consumption, with the transport sector accounting for 70% of diesel sales.