New Delhi: The recovery of Indian fuel demand remains patchy in August because gasoline consumption continues to increase but diesel sales fall, the initial data from state fuel retailers showed on Wednesday.
While gasoline sales are above the pre-covid level, Diesel continues to be left behind.
State-owned fuel retailers sell 2.43 million tons of gasoline in August, up 13.6 percent from last year’s period.
It was 4.1 percent higher than pre-covid gasoline sales of 2.33 million tons in August 2019.
Diesel sales – the most widely used fuel in this country – rose 15.9 percent to 4.94 million tons for 2021 August The previous year, but fell 9.8 percent from August 2019.
August diesel sales were also 9.3 percent lower than the previous month, mostly due to lower mobility because of the rainy season.
Diesel consumption is 8 percent lower than the pre-covid level in the first half of August.
Fuel demand has recovered to the near normal level in March before the emergence of the second wave of Covid-19 infection caused reimbosis in different countries, extending economic activity.
Consumption in May slumped to the lowest since August last year amid locking and restrictions in several countries.
Fuel demand shows signs of revival in June after restrictions began to subside and the economy gathered.
On July 30, S M Vaidya, the chair of the largest oil company in India IOC, has stated that gasoline consumption has increased over pre-covid levels because people prefer personal transportation of public transportation.
Diesel sales, he said, is likely to return to the pre-pandemic level by Diwali in November if the third wave of Covid infection does not lead to the locking reimbosis.
ATF consumption, which has seen the most severe fall because air travel is limited from March 2020, the possibility of returning to normal at the end of the current fiscal year in March, he said.
LPG consumption, the only fuel that shows growth even during the first lock because of the free supply by the government to the poor, up 1.85 percent year-to-year to 2.32 million tons in August.
However, 2.4 percent lower than August 2019.
With this airline has not continued a full-scale operation due to restrictions on travel around the world, jet fuel sales at 350,000 tons up 41.7 percent year-to-year but 44.5 percent more Low from August 2019.
Indian oil demand has dropped 0.5 million barrels per day by 2020, led by weakening bulk in transportation fuel, especially in April-June 2020.
Expanded locking actions, coupled with limited mobility, oil product requirements reduce.
Gasoline and Jet fuel recording historical decrease compared to the same period in 2019.
Diesel fell, in line with weakness in industrial activities, as well as road and agricultural construction.