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

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 coronavirus cases and floods in many parts of the country restricted economic activity.

File photo of a petrol pump used for representational purpose only (PTI)
File photo of a petrol pump used for representational purpose only

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.

Also check these Vehicles

Find more Cars
Maruti Suzuki Baleno (HT Auto photo)
1197 cc | Petrol | Manual
₹ 6.50 - 10 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Porsche Macan (HT Auto photo)
1984 cc | Petrol | Automatic (Dual Clutch) | 12.35 kmpl
₹83.21 Lakhs - 1.36 Cr* Ex-showroom price
Add to compare
Check latest offers
Mercedes Benz C-class 2022 (HT Auto photo)
1496 cc | Petrol | Automatic (TC)
₹ 55 - 61 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Bmw R 1250 R (HT Auto photo)
1254 cc
₹ 15.95 - 16.25 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Altroz (HT Auto photo)
₹ 5.44 - 9.56 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Citroen C3 (HT Auto photo)
₹ 5.71 - 8.05 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

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.

Also Read : India's petrol, diesel demand dips in July first half due to high cost, lockdown

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."

Fuel consumption 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.

First Published Date: 12 Aug 2020, 14:32 PM IST
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
4% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 95 Rs. 99
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999
68% OFF
PUNZONE Car Body Scratch Remover - Scratch Repair Polishing Wax Kit Sponge Body Compound Cream Wax, Car Body Compound Scratch Remover
Rs. 289 Rs. 898

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
Couldn't verify the OTP.
It's either expired or it's incorrect.