Indian fuel demand falls in June

India in June consumed 15pc less diesel and 13pc less gasoline against a year earlier after its four-month Covid-19 lockdown shrunk economic activity and restricted movement of people and vehicles.

Diesel sales fell to 1.57mn b/d last month from 1.85mn b/d a year earlier, according to preliminary oil ministry data. Gasoline demand averaged 642,000 b/d during the period from 743,000 b/d a year earlier. Indian diesel sales averaged 1.32mn b/d in May and gasoline demand averaged 482,000 b/d.

Demand for jet fuel was most affected among transport fuels as international travel is banned by the Indian government until 31 July, with domestic flights also severely restricted. Use of jet fuel fell by 66pc last month to 58,000 b/d from 171,000 b/d a year earlier.

India's total fuel demand in June fell to 16.3mn t from 17.7mn t a year earlier. Demand for naphtha increased to 346,000 b/d from 293,000 b/d a year earlier after crackers, fertilizer plants and other petrochemical units resumed operations after the lockdown. Fuel oil demand rose to 109,000 b/d from 102,000 b/d a year earlier.