Diesel, power consumption shrinks in November as festive demand fizzles out

NEW DELHI: India’s diesel and power consumption, considered bellwether for economic activity, contracted sharply in November as festive season demand fizzled out, indicating the economic recovery remains fragile as renewed curbs in several states hit by a second wave of Covid 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 the same month from 93.94 BU in the year-ago period.