Fuel, power demand rebound in June as states lift curbs

(This story originally appeared in on Jun 16, 2021)

India’s fuel and power demand bounced back in June as states lifted curbs on the back of declining Covid-19 cases across the country, market and government data show.

Petrol consumption posted a monthly growth of 15% and diesel 12% in the first fortnight of June. Yet, the sales volume of petrol was 3.5% lower than a year ago and 21% down from the same period of 2019.

Diesel volumes were 7.5% lower than the corresponding period of last year and more than 21% lower than the same period of 2019.

Consumption of diesel, a proxy for economic activities, had posted a monthly fall of 16% and petrol 17% in May as the second Covid-19 wave prompted lockdowns in states, especially the industrialised ones.

Power consumption rose 9% to roughly 56 BUs (billion units) during the fortnight under review from a low base of 51 BUs in the year-ago period as early onset of monsoon and lower industrial activities crimped demand. Consumption had recorded a monthly decline of 7% in May.

Jet fuel consumption during the first half of June was sequentially down 17% from the same period of May and 13% lower than a year ago. But the volumes were was 65% lower than the comparable period of 2019 as flights still remained curtailed.

Demand for LPG, or household cooking gas, was marginally down from May but 14.6% higher than the same period of 2020 and 22% more than the comparable period of 2019.


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