Fuel demand in India, the world’s third-largest oil importer and consumer, typically drops during the four-month monsoon season, which begins in June, as parts of the country are hit by heavy flooding.
Diesel demand in August fell 4.9% from July to 6.12 million tonnes, while gasoline demand rose 5.8% to 2.82 million tonnes, according to the data.
Monsoon rains reduce demand from the agricultural sector as irrigation needs decrease. Diesel accounts for about two-fifths of India’s overall refined fuel consumption and is directly linked to industrial activity in Asia’s third-largest economy.
State-owned retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of retail fuel outlets in the country.