Domestic diesel sales slipped 2 per cent in February from a year ago, the first fall since May 2009, as price hikes and improved electricity supplies reined in demand.
Domestic diesel sales slipped 2 per cent in February from a year ago, the first fall since May 2009, as price hikes and improved electricity supplies reined in demand, government data showed on Tuesday.
The decline in diesel demand helped bring overall local fuel sales down 1.5 per cent in February from a year ago, the first decline since September 2010.
Oil product sales, a proxy for oil demand in India, totalled 12.25 million tonnes in February compared with 12.44 million tonnes a year ago, according to the data from the Petroleum Planning and Analysis Cell of the oil ministry.
Diesel consumption, which makes up over 40 per cent of local fuel sales, fell to 5.39 million tonnes, the data showed.
India removed subsidies from diesel sold to bulk buyers in January and allowed state fuel retailers to raise retail prices by up to 0.50 rupees, or one US cent, a litre each month to gradually align them with market rates.
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