Diesel, electricity demand slumps

NEW DELHI: India’s diesel and power consumption, considered a bellwether for economic activity, contracted sharply in November as festive season demand fizzled out, indicating that the economic recovery remains fragile as renewed curbs in several states hit by a second wave of infections restricted movement of people and goods.
Monthly sales data of public sector fuel retailers, who dominate 90% of the market, showed diesel consumption falling 7% from a year ago in November. On monthly basis, however, diesel grew 8% from October, when consumption had shot past the pre-pandemic level for the first time in eight months. Power demand dropped 4.7% to 98.37 BU (billion units) in same month from 93.94 BU in year-ago period.
The drop in diesel and power demand follows data last week showing the economy shrinking 7.5% in the third quarter after slumping nearly 24% in the previous three months.