The nine-month constant slow down of fuel demand recovered in June due to ease in the restrictions of Covid-19 building economic activity and mobility to pick up.
According to data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas, fuel consumption rose 1.5 per cent to 16.33 million tonnes in June from a year earlier. Petrol sales rose 5.6 per cent year-on-year to 2.4 million tonnes in June. It was up 21 per cent from May sales of 1.99 million tonnes.
Fuel demand had recovered to near-normal levels in March before the onset of the second wave of COVID-19 infections led to the implementation of lockdowns in different states, hampering mobility and muting economic activity.
After the restrictions were eased in June fuel demand showed a revival in fuel demand and the economy again gathered its momentum.
The then oil minister had stated before that fuel demand would recover by the end of the year 2021.
“We are confident by the end of this calendar year we will be in a position to restore our original (pre-COVID) consumption behaviour,” the minister said.
Consumption of LPG rose from 9.7 per cent year on year to 2.26 million tonnes. It was up 26.3 per cent over June 2019. It is because of free supplies by Government to the poor and needy.
With airlines yet to resume full-scale operations because of travel restrictions around the globe, jet fuel sales at 2,58,000 tonnes was up 16.2 per cent year on year but 61.7 per cent lower than June of 2019.