Indian fuel demand falls as Covid surge worsens

India's diesel, gasoline, jet fuel and LPG demand all declined in the first half of April from a month earlier as Covid-19 infections surged, data from state-controlled refiners show.

Diesel use slipped to 1.38mn b/d during the period, down by 3pc from 1.42mn b/d a month earlier as a rising tide of coronavirus cases sparked lockdowns across the country. Demand for gasoline fell by 5pc to 561,000 b/d from 592,000 b/d in the first half of March, according to the figures, which reflect around 90pc of the country's fuel sales.

LPG demand, which had bucked the trend in the wider fuel market and increased during Covid, fell by 6.4pc to 1.03mn t in the first half of this month. Jet fuel demand was down by 8pc to 101,000 b/d.

India recorded a recorded 217,000 Covid-19 cases yesterday, as one of the world's worst outbreaks continues to accelerate.

Diesel use is likely to surge by 13pc in the April 2021 to March 2022 financial year to 1.7mn b/d as the economy rebounds from the Covid-19 pandemic, according to the latest oil ministry forecasts, although these were made before the latest surge in infections. Gasoline use will average 726,000 b/d over the same period, the oil ministry said.

Jet fuel demand is forecast to rise by 74pc to 140,000 b/d and demand for LPG is projected to rise by 5pc to 29mn t.