<article><p class="lead">Indian gasoline demand surpassed pre-Covid-19 levels in July as driving activity and mobility increased with the easing of lockdowns in the country. But higher retail prices weighed on diesel consumption.</p><p>Average driving activity across India was at <a href="https://direct.argusmedia.com/newsandanalysis/article/2240913">53pc above a 13 January 2020 baseline in July</a> compared with 8pc above the same baseline in June, according to mobility data from US technology firm Apple. Average driving activity was 62pc above the baseline during 1-8 August.</p><p>Gasoline consumption of 717,000 b/d in July rose by 6pc on the month and by 4pc from pre-pandemic July 2019, oil ministry data showed. Consumption was also up by 16pc on the year. </p><p>Diesel demand of 1.48mn b/d in July fell by 4pc on the month and by 10pc from the same time in 2019, the data showed. But consumption rose by 11pc on the year.</p><p>The oil ministry data were mostly in line with <a href="https://direct.argusmedia.com/newsandanalysis/article/2239989">consumption figures from state-controlled refiners</a> that account for around 90pc of India's fuel sales.</p><p>Retail diesel and gasoline prices have risen to a record high over the last two months, with diesel being sold at 97.45 rupees/litre ($1.31/l) in Mumbai today and gasoline retailing at Rs107.83/l. Prices have been unchanged for about three weeks.</p><p>India's biggest state-controlled refiner IOC expects diesel use to <a href="https://direct.argusmedia.com/newsandanalysis/article/2239554">reach pre-Covid-19 levels by the Diwali</a> festival in November, while fellow state-controlled refiner Hindustan Petroleum (HPCL) anticipates that demand will <a href="https://direct.argusmedia.com/newsandanalysis/article/2241129">reach or come close to pre-pandemic levels</a> by the end of the year. </p><p>Meanwhile, India's jet fuel consumption of 80,600 b/d in July rose by 19pc on the month and by 36pc from the same time last year. But it was down by 52pc from July 2019.</p><p>The country's bitumen consumption of 406,000t fell by 20pc on the month and was mostly unchanged from July 2019.</p><p>India's overall demand for oil products, including LPG, naphtha, fuel oil and petroleum coke, of 16.8mn t in July rose by 3pc from a month earlier but was down by 6pc from the same month in 2019.</p><p class="bylines">By Sathya Narayanan</p></article>
