Fuel demand crashes in March; April to be worse

New Delhi: Domestic fuel demand crashed in March, with diesel sales contracting by a quarter, petrol shrinking 15% and jet fuel falling by almost a third as the economy froze under the nationwide lockdown, industry executives said. They warned of a worse April first-half, which overlaps with two weeks of the lockdown.

Fuel demand fell as people stayed home, factories shut, vehicles went off the road and planes were grounded after the government imposed a three-week nationwide lockdown on March 25 to stem the spread of Covid-19. In March, demand for diesel fell 24% from a year ago, according to industry executives. The government is yet to publish fuel demand data for March. Diesel accounts for 40% of oil demand in the country and is an indicator of economic activity.