You are here: Home » Companies
;
Business Standard

India's weak fuel demand drags on as coronavirus crisis worsens

Sales of gasoline, or petrol, fell by 10.3% from a year earlier to 2.26 million tonnes, and were down 0.8% from 2.28 million tonnes in June

Topics
AstaGuru

This is article Banner

Oppo
Oppo

India's fuel demand dragged lower in July, posting its fifth consecutive year-on-year decline, government data showed on Tuesday as a spike in cases and floods in many parts of the country restricted economic activity.

Consumption of refined fuels, a proxy for oil demand, fell to 15.68 million tonnes in July, 11.7% lower compared with a year earlier and 3.5% below the prior month, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.

Diesel consumption, which accounts for about two-fifths of India's overall fuel usage and is widely used for transportation as well as for the country's irrigation needs, fell to 5.52 million tonnes last month from 6.31 million tonnes in June.

On an annual basis, demand for diesel declined about 19.3%.

Sales of gasoline, or petrol, fell by 10.3% from a year earlier to 2.26 million tonnes, and were down 0.8% from 2.28 million tonnes in June.

Demand for fuel was also impacted as higher retail prices dented demand in the world's third-biggest oil consumer and as virus cases continue to explode.

With over 2 million people infected with the novel coronavirus, India stands third with the most cases after the United States and Brazil.

In addition, heavy rains and floods have affected millions of people and battered industrial and construction activity in some Indian states.

India's top refiner, Indian Oil Corp, said last month it would continue to operate its refineries below capacity in 2020/21, and that it didn't see a recovery in demand to pre-Covid levels "in the near future."

in India nearly halved in April as a nation-wide lockdown to curb the outbreak halted economic activity and travel.

July naphtha sales fell 12.4% to 1.28 million tonnes from a year earlier but rose 10% from June.

Sales of bitumen, used for making roads, slipped 4.4% on an annual basis and about 45% month-on-month.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, August 12 2020. 13:00 IST
RECOMMENDED FOR YOU