The daily petrol sales remained flat at nearly 2.90 million tonnes. However, petrol demand rose 3.4 per cent when compared to the corresponding month last year. 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 hit by heavy floods.

Also Read: Jet fuel rate hiked by 1.65% to ₹90,779 after 4 months of reduction on softer crude prices

Monsoon rains also reduce demand from the agriculture sector as less irrigation-related requirements decrease. Diesel 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-run retailers and refiners – Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum – own about 90 per cent of India’s retail fuel outlets.

In addition, the sales of liquified petroleum gas (LPG) or cooking gas declined 3.4 per cent in June to 2.27 mmt, compared to May. LPG sales went down 0.8 per cent compared to the year-ago period.

Also, Jet Fuel Prices were hiked by 1.65 per cent — the first rate increase after fourth months of reduction due to softening crude oil prices. Aviation Turbine Fuel (ATF) price was increased by ₹1,476.79 per kilolitre, or 1.65 per cent, in the national capital to ₹90,779.88 per kl, according to a price notification of state-owned fuel retailers.

ATF prices were last reduced by ₹6,632.25 per kl on June 1. Jet fuel prices had been cut on previous four monthly revisions that happen on the first of every month. Domestic fuel rates, which vary from state to state depending on incidence of local sales tax or value-added tax (VAT), have been increased on firming up of global rates that followed four months of decline.

Updated: 01 Jul 2023, 09:36 PM IST