Gasoil and Gasoline sales take a hit as heavy monsoon causes flooding

Gasoil and gasoline sales fell in the first two weeks of August, in comparison to last month as monsoon rains curtailed demand for auto fuels, preliminary sales data showed.

Gasoil sales were 15.34% lower than the same period last month. Sales between August 1st and 15th were at about 2.1 million tonnes. This was about 7.9% lower than the corresponding period of 2019.

India's overall refined fuel consumption is directly linked industrial activity in the country. Gasoil, accounts for about two-fifths of it.

There had been an increase in auto fuel demand last month as Covid related restrictions were eased due to a decline in the number of cases.

However, heavy monsoon rains in early August caused flooding in some parts of the country and thereby reduced demand for gasoil and gasoline.

About 90% of the country's retail fuel outlets are owned by state-run , Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd.

Gasoline sales saw a monthly decline, in the first fortnight of August, for the first time since May, this year.

Gasoline sales totalled 985,820 tonnes, which is a decline of 4.93% from the same period last month but an increase of 3.74% from the corresponding period in 2019.