In June, India’s fuel market displayed a mixed performance, with notable variances across different fuel types, according to provisional sales data released by the Ministry of Petroleum and Natural Gas. Petrol consumption rose by 4.2% year-on-year, while diesel sales saw a modest increase of 0.7%. Aviation turbine fuel (ATF) and liquefied petroleum gas (LPG) sales surged by 8.7% and 5.1%, respectively.
State-run fuel retailers, which control 90% of the country’s petrol pumps, recorded a 3.6% growth in petrol sales. However, diesel sales for these companies declined by 1.3% in June. The year-on-year increase in ATF sales for state companies stood at 4.3%, which was slower than the overall industry growth rate of 8.7%. This disparity indicates a growing market share for private fuel retailers during the month.The robust expansion in ATF sales was primarily driven by the holiday season, which typically boosts leisure travel. Additionally, strong vehicle sales, predominantly of petrol-powered cars, contributed to the rise in petrol consumption. Diesel, which constitutes nearly 40% of the national oil product demand and is primarily used in long-haul transport, mining, and agriculture, experienced slower growth.
During the April-May period, diesel sales rose by 1.9% year-on-year, while petrol sales increased by 8%. ATF consumption saw a significant jump of 15%, and LPG sales grew by 6.7%. These figures highlight a continued upward trend in fuel demand, albeit with varying growth rates across different fuel types.The data reveals that private players are gaining traction in the fuel market, capturing an increased share due to the slower growth rates among state-run entities. This shift in market dynamics reflects the competitive landscape in India’s fuel sector and underscores the need for state-run companies to adapt and strategise effectively.
The provisional sales data emphasises the importance of understanding the nuanced trends within the fuel market, which are influenced by various factors, including seasonal travel, economic activities, and regulatory frameworks. As the country progresses towards a post-pandemic recovery, these consumption patterns will play a crucial role in shaping the strategies of both state-run and private fuel retailers.This comprehensive analysis of June’s fuel sales data provides valuable insights for stakeholders in the energy sector, offering a detailed perspective on the evolving market trends and their implications for the future.
