Petrol consumption continues to rise in August, diesel sales fall
After easing out of restrictions with Covid-19 cases declining in June, the fuel demand signaled signs of resurgence.
The petrol consumption in August continued to witness a rise as per the state fuel retailers’ preliminary data. However, the diesel sales in the same month saw a decline. The sale of petrol has already reached above pre-Covid times. In August over 2.43 million tonnes of petrol was sold by the state-owned fuel retailers, up by 13.6% in August 2020. It was 4.1% higher than pre-Covid petrol sales of 2.33 million tonnes in August 2019.
On the other hand, the sale of diesel saw a decline by 9.8% when compared to the sale in August 2019. It was 15.9% higher than August 2020. In August 2021, the sale stood at 4.94 million tonnes. Diesel is one of the most used fuels in the country.
The diesel sale in August 2021 was also 9.3% down than July 2021. This was because of the monsoon season and the decrease in transportation.
In March, just before the second wave of Covid-19, the demand for fuel had recovered to near-normal levels. In May the consumption went down heavily, the lowest since August 2020 amid lockdowns and restrictions in many states. After easing out of restrictions with Covid-19 cases declining in June, the fuel demand signaled signs of resurgence.
Industry officials believe that the diesel sales will revive to pre Covid level by Diwali in November, provided there is no threat of the third wave of Covid-19.
After the air travel was suspended, the consumption of ATF had seen the most drastic fall, March 2020. It is estimated to return to normal by the end of the current fiscal year in March.
India’s oil demand had decreased by 0.5 million barrels per day in 2020, due to a steep weakening in transportation fuel, mainly in April-June 2020.
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