By Nidhi Verma
NEW DELHI (Reuters) – Gasoil sales by Indian state retailers in August fell from a month earlier as monsoon rains restricted mobility while high inflation curtailed overall demand for goods, preliminary sales data shows.
Fuel demand in India, the world’s third biggest oil importer and consumer, typically falls during the four-month monsoon season beginning in June as parts of the country are hit by heavy floods.
Gasoil demand in August fell 4.9% from July to 6.12 million tonnes while gasoline demand rose 5.8% to 2.82 million tonnes, the data showed.
Monsoon rains reduce demand from the agriculture sector as irrigation-related requirements decrease. Gasoil 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 retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp Ltd own about 90% of the country’s retail fuel outlets.
(Reporting by Nidhi Verma; Editing by Kirsten Donovan)