August diesel demand nears pre-COVID level

Sales of fuel 8% short of 2019 period

NEW DELHI, 07/07/2021. A Scene at one of the fillng Station soon after the price of petrol crossed the Rs 100-a-litre mark as fuel prices were increased in line with firming international oil trends in New Delhi on Wednesday, July 07, 2021. Photo: MOORTHY RV / The Hindu

India’s recovery in demand for fuel continued in August as sales of diesel inched towards pre-COVID-19 levels on easing of pandemic-related restrictions, preliminary sales data showed on Monday. Petrol sales are already above pre-COVID levels while diesel is 8% short.

State-owned fuel retailers sold 0.98 million tonnes of petrol in the first half of August, 9.4% higher from a year earlier. Sales were 3.7% higher than pre-COVID petrol sales of 0.95 million tonnes in August 1-15, 2019.

Sales of diesel — the most used fuel in the country — rose 18.5% to 2.11 million tonnes during August 1-15 over the previous year, but was 7.9% lower from August 2019. Last month, diesel consumption was 11% lower than pre-COVID levels. This is the third straight month that has seen a rise in consumption since March.

Fuel demand had recovered to near-normal levels in March before the onset of the second wave of COVID-19 infections led to the reimposition of lockdowns in different States, stalling mobility and muting economic activity.