India's fuel demand nearly doubles in May as lockdown restrictions ease

Fuel consumption, a proxy for oil demand in Asia's third biggest economy, totalled 14.65 million tonnes.
By : Reuters
| Updated on: 11 Jun 2020, 08:36 AM
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.

India's fuel demand nearly doubled in May from the previous month as the country eased coronavirus-led restrictions, Oil Ministry data showed on Wednesday, signalling a slow revival of economic activity.

Fuel consumption, a proxy for oil demand in Asia's third biggest economy, totalled 14.65 million tonnes in May, 47.4% higher than in April but still 23.3% lower than a year earlier, the data from the Petroleum Planning and Analysis Cell (PPAC) of the ministry showed.

(Also read: How fuel prices have surged in India in four days)

Trending Cars

Find More Cars

Local sales of refined products in the world's third biggest oil importer and consumer had fallen to their lowest since 2007 in April as the nation imposed a complete lockdown to prevent the spread of coronavirus.

Due to the improving demand, Indian refiners are already scaling up crude processing, like their Asian peers. Indian Oil Corp, the country's top refiner, aims to operate its plants at about 90% capacity in June.

(Recap read - Fuel prices may rise by 5 per litre after daily revision restarts: Sources)

However industry analysts expect it to take months for consumption to reach pre-lockdown levels as the monsoon season approaches, manufacturing activities remain low and transportation demand takes a hit in some parts of the country.

Consumption of diesel, which accounts for about two-fifths of India's overall fuel usage and is widely used in transportation and irrigation, was down about 29.4% year-on-year at 5.50 million tonnes.

Sales of gasoline, or petrol, fell by 35.3% from a year earlier to 1.77 million tonnes.

Petrol and diesel sales in May, however, increased by 81.8% and 69.1% respectively from April, the data shows.

Cooking gas or liquefied petroleum gas (LPG) sales rose about 12.8% to 2.32 million tonnes, with naphtha sales up by 36.4% to 1.08 million tonnes.

LPG sales in India are rising as the government provides free cooking gas cylinders to the poor.

First Published Date: 11 Jun 2020, 08:35 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city