Diesel demand falls 12% in August as local lockdowns stall economic recovery

NEW DELHI: Diesel demand dropped 12% in August over the previous month as local lockdowns, high prices and slower economic growth stalled the recovery. Petrol sales, however, grew 5.5% month on month but both fuels remained much lower than the last year’s levels.

This is the second straight month of decline – diesel sales dropped 12.5% in July over June – worrying industry executives that the recovery may take longer than expected. Compared to August of last year, sales of diesel and petrol are down 22% and 8.5% respectively, as per sales data from state-run fuel retailers that control 90% of the domestic market.