Indian State fuel retailers sees decline in July sales amid heavy rain

Preliminary data indicates that sales of gasoil and gasoline by Indian state fuel retailers declined during the period of July 1-16 compared to the previous month, mainly due to heavy rainfall disrupting travel demand.According to the data, daily sales of gasoil in July dropped by 19.7 per cent to approximately 2.96 million metric tons when compared to June.India, being the third-largest oil importer and consumer globally, typically experiences a decline in fuel demand during the four-month monsoon season starting in June. This is attributed to heavy floods affecting various parts of the country.The agricultural sector is also impacted during this period due to reduced irrigation requirements. Moreover, state retailers faced additional challenges in gasoil sales as private refiner Reliance Industries offered the fuel at lower prices.Gasoil consumption constitutes around two-fifths of India's total refined fuel usage and is closely linked to industrial activity in the country, which is Asia's third-largest economy.The data also revealed that state fuel retailers witnessed a 10.8 per cent month-on-month decrease in daily gasoline sales in July, amounting to approximately 1.26 million metric tons.Indian Oil Corp, Hindustan Petroleum Corp, and Bharat Petroleum, which are state-run retailers and refiners, collectively own approximately 90 per cent of India's retail fuel outlets.