Categories: Business

Domestic fuel demand recover in June Up 11 percent over may


Fuel demand recover

new Delhi. Fuel demand continues to improve after the lockdown imposed in the country due to the Kovid-19 epidemic. Fuel demand reached a 13-year low in April during a full lockdown. Economic activities have been slowly picking up since late May following the easing of sanctions, fueling fuel demand. Another reason for increasing fuel demand is that more and more people are using private vehicles rather than public due to fear of this epidemic. According to data from the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas, consumption of petroleum products increased 11 percent to 1.62 million tonnes in June from May. However, it is 7.8 percent lower than in June, 2019. The consumption of petroleum products was 18.7 million tonnes in June last year. Fuel demand came down to 99.3 lakh tonnes in April. This is the lowest level since 2007.

A nationwide shutdown was implemented to prevent the spread of corona virus. Economic activities were halted, and most vehicles were parked. Overall fuel demand has reached 92 percent of the pre-Kovid-19 level. The demand for the most consumed fuel, diesel, is 84.5 percent of normal and petrol demand is 86.4 percent of normal. Diesel consumption in June stood at 6.3 million tonnes, 14.5 per cent higher than in May, but 15.4 per cent less than in June 2019. Diesel demand in June has almost doubled compared to April. In April 2020, it stood at 32.5 lakh tonnes. According to the data, the sale of petrol in June increased by 29 percent to 22.8 lakh tonnes in comparison to May. However, this is 13.5 percent less than a year earlier in June 2019 but more than double the figure of 9,73,000 tonnes in May 2020. Officials said that the demand for petrol and diesel is increasing rapidly as people are now using private vehicles more than public vehicles. During this time the demand for LPG cylinder i.e. LPG is increasing rapidly. The reason for this is that the government is providing LPG free to poor families in the midst of Kovid-19 crisis. LPG demand in June increased by 15.7 percent to 20.7 lakh tonnes. A very limited number of flight services have started. As such, the demand for aircraft fuel ATF declined by 65.8 percent to 2,22,000 tonnes on an annual basis. Demand for industrial fuels is also improving with economic activity starting slowly. On an annual basis, naphtha sales grew by 18.2 percent to 11.6 million tonnes. Fuel oil consumption increased by 6.3 percent to 6,99,000 tonnes in June. Sales of bitumen used in road construction grew by 27.5 percent to 5,06,000 tons and demand for petroleum coke rose 7.8 percent to 1.6 million tons.

This post was published on July 11, 2020 3:25 am

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