Fuel demand hits 9-month low as Covid-19 stalls economic activity

Demand for fuel fell over 11% to 15.11 million tonnes in May, compared to the previous month and was down 1.5% from a year earlier, data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry.

India's fuel demand slumped in May to its lowest since August last year with a second COVID-19 wave stalling mobility and muting economic activity in the world's third largest oil consumer. Oil demand fell 11.3% to 15.11 million tonnes compared to the previous month and was down 1.5% from a year earlier, data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry showed on Wednesday. "It's primarily because of the lockdowns, but it's very difficult to isolate the impact on demand as even high oil prices could sort of pinch a little bit in terms of demand recovering more slowly," said Prashant Vashist, Vice President and Co-Group head at ICRA.