Diesel demand in India has recently experienced a decrease, particularly in June 2024.
Unusually high temperatures in parts of India have led to reduced travel, both for personal and commercial purposes. This directly impacts the demand for diesel, which is primarily used in the transportation sector.
There are several other reasons for this decline also:
Economic Factors: Although not explicitly mentioned in the provided sources. The economic factors like inflation and rising diesel prices could contribute to decreased consumption. Higher fuel prices might incentivize consumers to seek alternative modes of transportation or reduce overall travel.
Shifting Demand Patterns: While not a major factor in the immediate decline, there might be a gradual shift towards alternative fuels and electric vehicles in India. This long-term trend could contribute to a slower growth in diesel demand over time.
Agricultural Factors: Diesel is also used in the agricultural sector for machinery like harvesters and tractors. Factors influencing agricultural activities, such as weather patterns and crop cycles, could also play a role in diesel demand fluctuations.
Unexpected Trend: The decline in diesel demand comes as a surprise, as fuel sales usually surge during election seasons and summer harvest periods. However, this year has defied the trend, with fuel consumption falling month after month.
Finally, the decrease in diesel demand in India is likely due to a combination of factors, with extreme heat conditions and potentially economic concerns playing a significant role.