India’s fuel demand is bouncing back in June

India’s fuel demand is bouncing back in June

India’s fuel demand was revived in June after falling to a nine-month low in the previous month, easing restrictions to reduce the spread of the pandemic, helping to boost economic activity and mobility.

Fuel consumption rose 1.5% to 16.33 million tonnes in June a year earlier and 8% more than in May 2021, according to data from the Oil Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas.

Gasoline sales rose 5.6 percent year-on-year to 2.4 million tons in June. It rose 21 percent from 1.99 million tons of sales in May.

(Also read: Delhi and other cities pay 63% tax to central government on a liter of petrol)

Diesel fuel – the country’s most widely used fuel – rose 12 per cent from May to 6.2 million tonnes, but fell 1.5 per cent from June 2020 and 18.8 per cent from June 2019.

This is the first ascent since March.

Fuel demand reached normal in March and the outbreak of the second wave of COVID-19 infections led to the re-establishment of blockades in different states, halting mobility and silencing economic activity.

May consumption fell the least since August last year amid blockades and cuts in several states.

Fuel demand showed signs of revival in June, after easing cuts and picking up the pace of the economy.

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As the number of COVID cases declines and the pace of vaccines increases, state governments have continued to reopen, although there have been some exceptions such as Maharashtra.

Oil Minister Dharmendra Pradhan said last month that India’s fuel demand would return to pre-Pandemic levels by the end of 2021.

“We are confident that by the end of this calendar year we will be in a position to restore our original (COVID) consumer behavior,” Pradhan said.

LPG consumption, the only fuel that had growth during the first blockade because the government had free supplies to the poor, rose by 9.7% a year to 2.26 million tonnes. It rose 26.3 percent in June 2019.

As a result of worldwide travel restrictions, airlines have not yet resumed full-scale operations, sales of 2.58,000 tonnes of aircraft fuel rose by 16.2% year-on-year, but were 61.7% lower than in June 2019.

Naphtha sales fell by about 3.1 per cent to 1.19 million tonnes, while road bitumen sales fell by 32% to 5.09,000 tonnes. Fuel oil consumption rose 1.9 percent to 5.33,000 tons.

This story was published without a change in text from a wireless agency feed.


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