India’s auto fuel demand picked up in June as economic activity accelerated after the easing of pandemic-related lockdowns, preliminary sales data showed on Thursday.
State-run refiners sold 2.12 million tonnes of gasoline last month, up 29.35% from May and about 5.7% from the year-earlier period.
Sales of gasoil, which accounts for about two-fifths of India’s overall refined fuel consumption and is directly linked to industrial activity in Asia’s third-largest economy, rose 18.5% from May to 5.36 million tonnes, but were down 1.84% from June 2020.
Compared to June 2019, demand for gasoline and gasoil last month slipped 10.4% and 18.8%, respectively.
Fuel demand in India would recover to pre-pandemic levels by the end of this year after being hit by a deadly second wave of coronavirus, oil minister Dharmendra Pradhan said on Tuesday.
In May, local fuel consumption, a proxy for oil demand, slumped to its lowest since last August as lockdowns and travel restrictions in several states stalled mobility and muted economic activity.
State-run Indian Oil Corp IOC.NS, Hindustan Petroleum Corp HPCL.NS and Bharat Petroleum Corp Ltd BPCL.NS own about 90% of India’s retail fuel outlets.
Source: Reuters (Reporting by Nidhi Verma, Editing by Subhranshu Sahu)