Festive demand drives India's diesel sales in October, data shows

Business Recorder reported that diesel sales by Indian state-run fuel retailers reached 3.65 million metric tons during the opening half of October, up 26.4% from September and 25.4% compared with last year. Industry sources and preliminary data point to festival-season trucking and a national push to cushion drivers against costlier overseas fuel as the main drivers. Agricultural demand is also rising, as farmers run diesel gensets for irrigation.

Diesel prices worldwide have climbed to record levels in many markets as supply has been disrupted by the long Iran conflict and fighting between Russia and Ukraine. SP Singh, a senior fellow at the Indian Foundation of Transport Research and Training, said wholesalers have increased purchases to build inventory through the festival period, at least until Diwali in November. Truck sales in September 2026 totaled 44,323 units, a 33.57% jump on August.

State-run Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum have kept pump prices unchanged since May, which ICRA senior vice president Prashant Vasisht said leaves them absorbing about 20 Indian rupees ($0.21) per litre of diesel sold. Private retailers Nayara Energy and Reliance Industries have raised prices and are exporting fuel to take advantage of stronger global margins. Customers who had been buying from private firms are now moving to state outlets, and gasoline sales at state retailers rose 0.9% to 1.55 million tons in October 1-15 compared with the same period last month.