Categories: Business

Unlock 1 to revive fuel demand soon says IOC

Photo: FILE

fuel demand fall due to lockdown

new Delhi. The Indian Oil Corporation (IOC) hopes that after the commencement of economic activity, fuel sales will improve now. Petrol and diesel sales have fallen drastically due to the lockdown implemented over the past several weeks to curb the corona virus. Now the government has relaxed the restrictions under Unlock-1. The IOC stated that it would meet the approved capital investment for the current financial year 2020-21. The company said that it has deeply reviewed all investment proposals to harmonize costs and deadlines. The company said that it is very cautious about the cost and has taken steps to rationalize it. However, the company did not provide details of these steps.

Prime Minister Narendra Modi announced the lockdown from March 25 to prevent Kovid-19. This led to a huge drop in fuel sales in April. The factory and offices were closed during the lockdown. Vehicles were removed from the road. Also, trains and flight services were also closed. In a communication sent to the stock exchanges, the company said that in April, demand for fuel products fell by 46 percent due to the applicable lockdown due to Kovid-19. In April, petrol sales fell by 61 percent, diesel by 56.7 percent and aircraft fuel ATF sales by 91.5 percent. The company said the sale of petroleum products improved in May after the central and some state governments relaxed restrictions last month. However, despite this, sales in May were down 38.9 percent from the same month last year. From June 8, further relaxation of restrictions is being done in the country and malls and markets are going to open. The IOC said that due to easing of lockdown and improvement in the economy due to economic package, the sale of petroleum products will again pick up pace. The company said that international crude oil prices have increased recently and the rupee has also strengthened. This has largely offset the loss of storage and exchange rates.

This post was published on June 7, 2020 2:02 pm

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