Diesel demand tanks in August due to fresh state lockdowns

NEW DELHI: Data on fuel demand for August shows clear indications that renewed lockdowns across several states resulted in a sharp decline in consumption. While demand for petrol and diesel is yet to recover to pre-Covid levels after the precipitous fall recorded in April, on a month-on-month basis, demand had showed a positive trend after the government began easing restrictions in May.

However, data from the Union Petroleum Ministry’s Petroleum Planning and Analysis Cell (PPAC) released on Thursday shows that beginning July, demand for the freight transport fuel-of-choice— diesel— has continued to trend downward. Diesel consumption, which had crashed to 3.2 million tonnes (MMT) in April, had risen to 6.3 MMT in June. But July and August have recorded sales of only 5.5 MMT and 4.8 MMT respectively.