India’s fuel demand nearly halves in April amid lockdown

India`s fuel demand dipped 45.8% in April from a 12 months earlier, as a nationwide lockdown and journey curbs to fight the unfold of novel coronavirus eroded financial exercise.

Consumption of fuel, a proxy for oil demand, totalled 9.93 million tonnes – its lowest since 2007, authorities information confirmed on Saturday.

State fuel retailers in India offered 50% much less refined fuel in the primary two weeks of April than the identical time a 12 months earlier because the nation got here to a standstill as a result of lockdown that was put in place on March 24.

The authorities final week prolonged the lockdown till May 17, with some relaxations in lower-risk areas, though journey by air, rail and metro and inter-state motion of individuals by street was nonetheless banned.

The International Energy Agency (IEA) in its newest report mentioned India`s annual fuel consumption will decline 5.6% in 2020 in contrast with development of two.4% forecast in its March report.

Consumption of diesel, which is extensively used for transportation in addition to for irrigation wants in India, was down about 55.6% year-over-year at 3.25 million tonnes.
Sales of gasoline, or petrol, dropped by 60.6% from a 12 months earlier to 0.97 million tonnes.

Cooking fuel or liquefied petroleum fuel (LPG) gross sales rose about 12.1% to 2.13 million tonnes, whereas naphtha gross sales fell 9.5% to 0.86 million tonnes.

State-retailers offered 21% extra LPG in the primary fortnight of April from a 12 months earlier. India is offering free cooking fuel cylinders to the poor for 3 months to June to assist them climate the influence of the lockdown.

Sales of bitumen, used for making roads, slumped 71%, whereas fuel oil use dipped 40% in April.

However, the nation`s fuel demand is about to recuperate with easing restrictions on industrial exercise and transport in areas which have contained the unfold of coronavirus, oil minister Dharmendra Pradhan mentioned earlier this week.

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