Price PainThe price advantage of once cheap diesel has also faded. The fuel now costs almost as much as gasoline in some Indian states after being saddled with new taxes over the past six years, prompting some farmers to come up with novel alternatives such as liquefied petroleum gas to run water pumps.
Farms account for more than eighth of total diesel consumption in India.The demand shift related to the pandemic and broader energy transitioning means refineries that predominantly produce diesel will need to rethink their current output of products, said B.
Anand, chief executive officer at Nayara Energy Ltd., India’s second-biggest private refiner.Gasoline sales in September rose for the first time since February on a year-on-year basis.