Second Covid wave hammers India’s gasoline demand in April

Second Covid wave hammers India’s fuel demand in April - Times of India

NEW DELHI: India’s diesel consumption in April fell 10% and petrol 4% from the identical month of 2019, the pre-pandemic yr with ‘regular’ offtake, as a virulent second wave of Covid-19 infections hammers the world’s third-largest oil shopper.
A comparability with April 2020 is redundant because the nationwide lockdown, the world’s harshest, had erased 70% of demand. However a month-on-month comparability of knowledge reveals April diesel gross sales down almost 2% from March, when consumption had jumped 10% from February to 95% of the pre-pandemic degree. Petrol consumption noticed a sharper fall at 6% in April from a month in the past, when gross sales had posted 11% month-to-month soar to prime the pre-pandemic degree by 5%.
An early restoration in demand seems difficult at this level as main cities throughout states are being locked down or put below weekend curfew to test the virulent unfold of the virus. This has impacted the motion of individuals and items as work-from-home levels a serious comeback and folks desire to remain put. The drop in diesel demand, a proxy for financial actions, notably displays the influence of Covid curbs on manufacturing and mission actions in addition to interstate passenger motion. All have a bearing on diesel demand.
Jet gasoline gross sales have tanked 39% in April from the identical month of 2019 and greater than 11% from March, when gross sales had posted some features to succeed in 35% wanting the pre-pandemic degree. This implies the woes of airways aren’t going away anytime quickly.
Anticipating additional lack of demand, main state-run refiners are exporting fuels to the US and Europe, the place consumption is seen bouncing again on the power of mass vaccinations.
Demand for LPG, or family cooking fuel that’s largely imported, additionally dipped by virtually 4% from a month in the past, whereas coming down a fraction from April 2019. In March too, LPG consumption had proven marginal progress over the identical interval of 2019 and edged only one.3% up from the identical month of 2020.
That is in sharp distinction to the lockdown interval of 2020 when LPG was the one gasoline to have posted sustained progress as households remained confined inside their properties, resulting in extra cooking. The federal government’s provide of free LPG cylinders provided to poor households below the Ujjwala scheme additionally contributed to the expansion.

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