India diesel sales: 2nd wave of lockdowns take hefty toll

Indian sales of diesel — the lifeblood of the Asian giant’s economy — appear to have fallen sharply last month as several provinces imposed small-scale lockdowns to curb record daily infection rates.

Diesel sales at India’s three biggest fuel retailers dropped 13% in July from the previous month and were down 21% year-on-year, according to preliminary data from officials with direct knowledge of the matter. It’s a stark reversal from the previous couple of months when rebounding sales of the fuel were heralded as evidence the economy was on the mend following the world’s biggest national lockdown.

While diesel demand typically falls at this time of the year due to the monsoon, the decline exceeds the 8% month-on-month drop at the same point last year.