Fuel demand dips 11.7% in July

India’s fuel demand is beginning to flatline after showing signs of returning to life, as consumption dipped 11.7 per cent in July, official data showed.

Fuel consumption, a barometer of economic activity in the country, had slumped by over 45 per cent in April as nationwide lockdown halted most vehicular traffic and shut industries. However, with easing of lockdown restrictions, the demand picked up in May and June with month-on-month increase in consumption numbers.

However, mini-lockdowns imposed by states to contain the spread of coronavirus seemed to have stopped this recovery, with fuel demand falling 3.5 per cent in July over the previous month.