Petrol is mostly used by two, three and four-wheeler vehicles, while diesel is mostly consumed by the industrial and agriculture sectors.
The demand for petrol decreased to 702,000 tons in June compared to 776,000 tons in May. Sales of diesel dropped to 713,000 tons in June compared to 776,000 tons in the previous month, Topline Research reported while citing the Oil Companies Advisory Council (OCAC) data on Friday.
The demand for petrol and diesel dropped 12% and 16% respectively in June 2022 compared to the previous month, snapping a long uptrend in sales of petroleum products in the wake of the withdrawal of subsidies and imposition of taxes.
Petrol and diesel sales fall after the end of the subsidy. A significant increase in petroleum prices reduced their consumption.
“Petroleum product sales may further drop by 5-10% in July … and keep falling over the next three to four months in the backdrop of the price hike,” Khan said. The government has announced that it will continue to increase the petroleum development levy in phases till it reaches Rs50 per litre.
Overall sales:-
Sales of all petroleum products dropped 11% on a month-on-month basis to 1.94 million tons in June. They, however, remained almost flat compared to June 2021, Topline Research reported.
Sales of furnace oil dipped 2% in June compared to May, as the government used the fuel for electricity generation after prices of coal and RLNG shot up in the global market.
