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Festive Demand and Controlled Prices Fuel Surge in India Diesel Sales in October
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CNBC TV18•16-10-2026, 17:35
Festive Demand and Controlled Prices Fuel Surge in India Diesel Sales in October
- •Indian diesel consumption in the first half of October rose sharply to 3.65 million metric tonnes, marking a 25.4% increase compared to the previous year.
- •The surge in demand is primarily driven by increased truck movement for the festival season and agricultural needs such as irrigation.
- •State-run fuel retailers are absorbing a loss of around ₹20 per litre by keeping retail pump prices unchanged since May.
- •Customers are shifting from private retailers to state-run outlets due to significant price differences, as private stations charge more for fuel.
Key Questions Answered
Indian diesel consumption rose in October 2026 due to increased agricultural demand for generator sets and heightened truck movement to build inventory for the festival season.
State-run fuel retailers such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum have not revised pump prices since May and are absorbing a hit of around ₹20 ($0.21) on every litre of diesel sold at retail outlets.
Customers are shifting because private retailers like Nayara Energy raised their prices to benefit from global margins, making petrol and diesel at private stations cost ₹3 and ₹5 more per litre respectively compared to state-run retailers.
