Fuel demand has returned to pre-COVID levels: IOC Vaidyas

The country’s top oil firm said India’s fuel demand, excluding aviation turbine fuel, has returned to pre-COVID levels and a reflecting economy will help drive consumption growth in the near future.

Fuel sales fell a record 45.8% in April when a nationwide lockdown was imposed to investigate the spread of coronovirus infection. With demand for lockdown restrictions relaxed, demand for petrol returned to normal growth and now diesel also reached pre-CHOID levels.

Indian Oil Corporation (IOC) chairman Srikanth Madhav Vaidya said, “Except for ATF, we have touched normal demand.” “We’re back on track.” While petrol sales reached pre-COVID levels a few months ago, diesel sales increased by 7.4% year-on-year in the first half of March. LPG sales were also seen to increase during the lockup. Airlines are not operating all flights, ATF sales are lower than normal. “It may take a quarter of an ATF to return to normal, maybe 3-4 months,” he said.

The IOC said fuel demand accelerated as the economy grew. “Let’s hope for the best with the vaccine roll-out,” he said. Diesel sales rose to 2.84 million tonnes in the first half of March, while demand for petrol rose 5.3% to 1.05 million tonnes. This is the first annual increase in petrol sales since October.

ATF sales, which fell more than 80% in the aftermath of the lockdown, were down 36.5% in the first half of March. India’s economy returned to growth in the previous quarter as real GDP is estimated to have expanded 0.4% year-over-year after two-quarter contracts.

OPEC’s monthly report forecast an increase of 4.99 million barrels per day, a jump of 13.6% in India’s oil demand in 2021 last week.