Monsoon rains in India dent state retailers' diesel sales, data shows

New Delhi: Indian state retailers' diesel sales fell in the first half of September from the previous month, preliminary sales data showed on Monday, as monsoon rains hit industrial activity and mobility.

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.

State retailers sold 2.4 million metric tons of diesel in the first half of September, down 4 per cent from the same period in August and by 12.3 per cent from a year earlier, the data showed. Diesel in mostly used by trucks and commercial vehicles.

Sales of gasoline, primarily used in passenger vehicles, remained flat at 1.23 million tons. However gasoline sales was down 5.1 per cent from the first of September last year, the data showed.

Apart from restricting mobility, monsoon rains also hit demand from the agriculture sector as farmers use gasoil-fired generators for irrigation.

Gasoil consumption is directly linked to industrial activity in Asia's third-largest economy.

State retailers Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd own about 90 per cent of the country's retail fuel outlets.

The four state fuel retailers sold 1.32 million tons of liquefied petroleum gas in the first half of September, up 3.3 per cent from the previous month and down 2.9 per cent from last year.

Aviation fuel sales at 303,600 tons were down 1.1 per cent from the last month, the data showed.