Categories: Business

fuel demand dips 11.7 percent in July

Photo: PTI

Fuel demand dips

new Delhi. After improving fuel demand in the country, once again it has softened. According to official figures, fuel consumption decreased by 11.7 percent in July on an annual basis. This time, fuel demand declined by 3.5 percent in July compared to June. Fuel consumption is considered a mirror of economic activity. It fell by more than 45 percent in April. The reason for this was the stall of economic activity due to the corona virus epidemic and the 'lockdown' for its prevention. However, demand increased in May and June, with the 'lockdown' relaxed. There was an increase in consumption on a monthly basis. However, the re-imposition of lockdown in some states and infected areas curbed consumption.

According to official figures, fuel demand in July declined to 15.57 million tonnes, a decrease of 11.7 percent from 17.77 million tonnes in the same month of 2019 a year ago. At the same time, consumption was down 3.5 percent in July compared to 1624 million tonnes in June. According to data from the Petroleum Planning and Analysis Cell (PPAC), diesel consumption, which accounts for about 40 percent of the country's total fuel consumption, declined by 19.25 percent year-on-year to 55.2 lakh tonnes in July. Diesel consumption was 63 lakh tonnes in the month of June. Demand for petrol declined 10.3 per cent year-on-year to 22.6 lakh tonnes in July. This is 0.8 percent lower than the 22.8 million tonnes in June. According to the official figures released on Tuesday, industrial production declined by 16.6 percent in the month of June. Whereas in May and April it declined by 30 percent and 50 percent respectively. According to the data, the demand for naphtha declined by 12.3 percent to 12.8 lakh tonnes in July from the same month a year ago. However, it has increased by 10 percent compared to June. Demand for coal tar used for road construction was down by 4.4 percent year-on-year to 3,89,000 tonnes. It declined by about 45 percent compared to June last month. LPG (LPG) has been the only fuel whose demand has increased. The main reason for this is to make available LPG to the needy people to reduce the impact of Kovid-19 from the government. LPG sales were up 2.3 percent at 22.7 lakh tonnes in July.

This post was published on August 13, 2020 4:12 am

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