Domestic fuel demand rises in July as COVID-19 restrictions ease

This is the second consecutive month to record a jump in consumption since March.

In the month of July, fuel demand was reported to increase in India due to the relaxations in coronavirus-related restrictions.

Government-run fuel retailers sold 2.37 million tonnes of petrol, up 17 per cent from the year earlier period and 3.56 per cent higher than July 2019.

Furthermore, as per a preliminary sales data, the reboot of the economy has helped petrol consumption reach pre-pandemic levels. Before the devastating second wave of COVID-19 hit India, the demand of fuel had had almost recovered to normal levels in March 2021.

On July 30, the Chairman of India’s largest oil firm i.e. Indian Oil Corporation Limited (IOC), S. M. Vaidya said petrol consumption had increased over pre-COVID levels due to people preferring personal transport over public transportation. According to him, the sales of diesel would most possibly return to pre-COVID levels by Diwali in November if a third wave does not result in imposing lockdowns again.

In the year 2020, country’s oil demand had fallen down by 0.5 million barrels per day caused by sharp transportation fuel weakening mainly in April-June 2020.

The consumption of liquified petroleum gas (LPG), the only fuel which grew despite the first wave of COVID-19, surged 4.05 per cent year-on-year (YoY) to 2.36 million tonnes in July 2021, higher by 7.55 per cent over July 2019.

Even though airlines have resumed full-scale operations, jet fuels sales stood at 2,91,100 tonnes and was up 29.5 per cent YoY

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