India's Festive Fuel Surge: Petrol Soars While Diesel Stagnates

India's petrol sales soared to a five-month high in October due to festive travel, while diesel consumption remained flat, contrary to the usual trend. This discrepancy occurred despite an increased demand for most fuels, including LPG and jet fuel, driven by household and seasonal activities.

India's petrol sales reached a five-month peak in October, driven by a surge in festive travel, according to preliminary industry data. Petrol consumption climbed 7 percent year-on-year to 3.65 million tonnes, marking an increase both from the previous October and from the preceding month.

However, diesel consumption defied expectations, showing stagnation rather than the anticipated rise, with sales dipping slightly to 7.6 million tonnes compared to last year's 7.64 million tonnes. Traditionally, diesel demand falls during the rainy season due to decreased vehicular movement but rebounds post-monsoon. This year, though, such a rebound was absent despite the festive season.

Meanwhile, LPG and jet fuel continued to show growth, with LPG sales up 5.4 percent due to heightened domestic needs. Jet fuel sales rose 1.6 percent, continuing a growth trend since 2019. Overall, petrol and other fuels experienced a varied demand pattern, reflecting changes in consumer behavior and economic activity.