Bengaluru, NFAPost: India’s overall petroleum products consumption, which had nosedived in last week of March’20 and April’20, is now steadily getting to its pre-lockdown levels in June’20 as reflected in the sales figures of PSU oil companies -IOC, BPC and HPC.
The sales of petroleum products in India, the world’s third-biggest oil consuming nation, had fallen to the lowest since 2007 due to the
nationwide lockdown necessitated preventing the spread of Covid-19 pandemic.
With the gradual lifting of lockdowns and beginning of unlocking of the economy in a phased manner allowing resumption of industrial
activity and movement of people, the total consumption of petroleum products has reached 88% in June’20 (11.8 MMT) compared to
June’19 (13.4 MMT), indicating the increase in production activities across all segments of the economic spectrum.
The demand of industrial fuels such as Sulphur, Petcoke and Naphtha has reached to levels of 89.3%, 118% & 80.7% respectively, while
demand for marine fuels is 138.5 % vis-a-vis corresponding period last year. The crude oil throughput of Oil Marketing Companies
(OMCs) refineries has already crossed 85% as on date, from as low as of 55% in the beginning of April’20.
On an industry basis, in June’20, the petrol consumption has reached 85% of last year’s consumption i.e. 2.0 MMT in June’20 vs 2.4 MMT
in June’19 and consumption of diesel reached 82% i.e. 5.5 MMT in June’20 Vs. 6.7 MMT in June’19.
The timely arrival of the monsoon and pick up in agricultural activities during Kharif season has accelerated diesel consumption, registering a gain of 96% on volumes of April ’20 5.5 MMT in June’20 from 2.8 MMT in Apr’20. The demand for the LPG continues to rise, with a robust growth of 16.6% in June’20 over June’19.
With the partial opening of domestic aviation sector, with 33% capacity and repatriation flights operating under the Vande Bharat Mission for international passengers, ATF consumption has witnessed fourfold increase, approx.52 TMT in Apr’20 Vs 201 TMT in Jun’20.
Similarly, with re-start of major road construction projects, Bitumen consumption has registered a growth of 32% in June’20 as compared
The consumption of all petroleum products has significantly increased from April’20 level of 49% (6.6 MMT in Apr’20 vs
13.4 MMT in Apr’19) to 88% level in June’20 (11.8 MMT in June’20 Vs 13.4 MMT in June’19).
The rising consumption of POL
products reflects that the Indian economy is gradually gaining momentum, with the relaxation in lockdown restrictions and revival
of economic activities that are steadily getting back on track.