Fuel sales drop in November as festive demand moderates after Diwali

New Delhi: Diesel sales dropped 8% and petrol 1% year-on-year in November as festival-driven demand moderated after Diwali. Diesel sales were 14% lower compared to the pre-pandemic month of November 2019, as per the sales data from state-run oil companies that control 90% of fuel stations in the country. In October, the diesel demand had risen above the pre-pandemic level.

Year-on-year comparisons during October and November are a bit skewed due to the timings of Hindu festivals Navratri and Diwali, which fall within a few weeks of each other but can conclude in October in some years while stretching to mid-November in others.

Retailers usually stock up ahead of the festival, pushing up demand for transportation fuels. And the demand drops in the weeks after the festivals. Unseasonal rains and floods in some parts of the country also contributed to fuel demand decline in November, industry executives said.


Petrol sales have witnessed a sharp recovery in the past several months as the second wave of the pandemic ebbed and people went back to near-normalcy in their lives. Preference for personal vehicles also contributed to a surge in petrol sales, which is now moderating. Petrol demand fell 1% year-on-year but remained up 4% compared to the 2019 level. The sluggishness could be because of people shifting back to public transport as its availability has increased.

Jet fuel sales have sharply recovered in November, rising 29% from a year ago. The sales are still down 32% from November 2019.

A growing fear of Omicron, a new variant of Coronavirus, that has brought back many international flying curbs could slow down the recovery in jet fuel demand.

Cooking gas consumption was up 0.5% year-on-year and 5% higher compared to November 2019.