India’s August Diesel Consumption Declined, fuel demand slipped further in August and has stamped its most significant decline since April, as a surge in coronavirus infections.
It continues to throttle the economic activities and transportation balance as government data revealed on Wednesday.
The corona cases have soared past 4.3 million making India the second worst-hit country in the world. The sale in refined fuels, a proxy for demand has fallen to 14.39 million tonnes in August, which is about 16% lower from earlier, and its sixth consecutive year-on-year slide.
It also fell by 7.5% the prior month, which is its most significant month-on-month decline since April.
The data analysis has been initiated by the Petroleum Planning and Analysis Cell of the Ministry of Petroleum and Natural Gas.
On an annual basis, the demand of diesel declined by 20.8%. Falling monthly diesel sales indicates slowing economic as well as industrial activity.
India’s economy was projected to contract 11.8% in the current fiscal year beginning from April, India Ratings and Research, a domestic arm of rating agency Fitch, revealed on Tuesday.
Now the economy is projected to contract 11.9% in the current quarter. Sales of bitumen, which is used for making roads, rose by 39.1% on an annual basis but was down by 18% month-on-month.
Today India’s August Diesel Consumption Declined, which is a crucial parameter linking with economic growth accounts for about 40% of overall refined fuel sales in India, fall by 12% to 4.85 million tonnes last month.