India’s fuel demand contracted by 9.1% in the fiscal year ended March 31, for the first time, was imposed as a tight lockdown to halt the economic spread of the epidemic, government data on Friday showed has gone.
According to the latest data released by the Petroleum Planning and Analysis Cell of the Ministry of Oil, India consumed 194.63 million tonnes of petroleum products in 2020-21 as against 214.12 million tonnes in the previous year.
This is the first fuel consumption contract since 1998–99, for which the most historic year government data is available.
The demand contraction was led by Diesel, the most consumed fuel in the country. Diesel consumption fell 12% to 72.72 million tonnes, while demand for petrol fell 6.7% to 27.95 million tonnes.
The government implemented a nationwide lockout in March last year, closing down factories and businesses. It was raised in phases starting in June.
GDP is projected to contract by 7-8% in 2020-21 as economic activity has indicated a recovery in the last quarter of 2020.
However, a second wave of COVID-19 infection is threatening to affect the neonatal recovery, despite a widespread vaccination roll-out with lockdown implemented in some states.
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