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Fuel demand declines in August

Sales of refined fuels, a proxy for oil demand, fell to 14.39 million tonnes in August, about 16% lower from a year earlier
Fuel demand had slumped a record 48.6 per cent in April to 9.4 million tonnes as the government imposed a nationwide lockdown
Fuel demand had slumped a record 48.6 per cent in April to 9.4 million tonnes as the government imposed a nationwide lockdown
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Our Special Correspondent   |   New Delhi   |   Published 11.09.20, 02:47 AM

The country’s fuel demand in August saw its biggest decline in monthly sales since April because of a surge in coronavirus cases which continue to impact economic activity.

Sales of refined fuels, a proxy for oil demand, fell to 14.39 million tonnes in August, about 16 per cent lower from a year earlier, its sixth consecutive year-on-year slide.

It also fell 7.5 per cent from July, its biggest month-on-month decline after April, data from the Petroleum Planning and Analysis Cell (PPAC) of the ministry of petroleum and natural gas showed.

Fuel demand had slumped a record 48.6 per cent in April to 9.4 million tonnes as the government imposed a nationwide lockdown in an attempt to curb the spread of coronavirus. It recovered in the subsequent two months but has been falling again since July, on a monthly basis.

Sale of diesel, the most consumed fuel, fell 12 per cent to 4.84 million tonnes in August from 5.51 million tonnes in the previous month.

Petrol sales fell 7.4 per cent year-on-year to 2.38 million tonnes although it rose 5.3 per cent from 2.26 million tonnes in July as commuters preferred driving personal vehicles to using public transportation.

Demand for aviation turbine fuel grew 9.9 per cent to 256 million tonnes, growing for the fourth consecutive month, as domestic carriers ramped up services.



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