Consumption of fuel fell 9.4 per cent to 17.01 million tonnes from MarchThe country's Aprilfueldemandslipped from the previous month as the world's third-largest oil consumer bore the brunt of ragingcoronavirusinfections, with the prospect of further restrictions weighing on theoutlook.
Consumption offuel, a proxy for oildemand, fell 9.4 per centto 17.01 million tonnes from March, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum - Natural Gas showed on Tuesday.On a yearly basis,demandsurged 81.5 per centfromApril2020 lows, when consumption plunged to the lowest since 2006 ascoronavirusrestrictions during India's firstwave battered the economy.
This represents the biggest year-on-year increase since data going back to about 1999.
"India's secondwaveof virus infections and varying containment measures provides an uncertainoutlookfor thefueldemand," Edward Moya, senior market analyst at OANDA said.India is nearing 400,000 infections a day and the second surge has increased calls for a nationwide lockdown and forced many states to impose tougher restrictions.
Prime Minister Narendra Modi's resistance to a full lockdown has supported consumption in the short-term, Moya said.Fueldemandhad reached pre-pandemic levels of around 18.8 million tonnes in March, the highest level since end-2019.April fuel demand hit by second COVID-19 wavePhoto Credit: ReutersHowever, the pandemic has led the country's top state oil refiners to reduce processing runs and crude imports, company officials told Reuters on Tuesday.This trend is likely to extend into May asIndianrefineries are reducing their refinery runs, UBS analyst Giovanni Staunovo said, adding that once mobility restrictions were lifted,demandshould recovery swiftly.Diesel, gasoline sales dip in AprilPhoto Credit: ReutersDiesel consumption, a key parameter linked to economic growth in India, fell 7.5 per centto 6.68 million tonnes from the previous month but surged 105.5 per centyear-on-year.
Gasoline, or petrol, sales fell 13.1 per centto 2.38 million tonnes inApril- the lowest level since August 2020, and were 145 per centhigher compared with same period a year ago.