According to provisional data from the Petroleum Planning & Analysis Cell (PPAC), diesel consumption rose 6.4% year-on-year (YoY) to 6.77 million tonnes, also marking a 2.9% month-on-month (MoM) increase. Petrol consumption climbed 7.5% YoY to 3.39 million tonnes, though it fell 4% compared with August due to reduced personal mobility during rains.
Industry officials said GST rate cuts ahead of the October-December festive and wedding season spurred aggressive stocking, particularly in diesel, while rising ownership of cars and two-wheelers kept petrol demand resilient.
“GST rationalisation led to advance bookings by stockists, with benefits likely passed on to consumers. This will likely support diesel volumes into October as well,” a refiner said.
India’s fuel demand had slowed between June and August because of monsoon disruptions, after hitting record highs in May. September rains were 15% above normal, limiting mobility but not dampening seasonal stocking.
Jet fuel consumption edged up 0.7% MoM to 716,000 tonnes but slipped 1.4% YoY as rains affected air travel. Meanwhile, cooking gas demand rose 6.5% in September.
Fuel consumption is widely seen as a proxy for economic activity. Analysts expect GST relief and festival-driven demand to keep petroleum consumption buoyant in the coming months.