India’s fuel demand recovers as lockdowns ease
India's fuel demand recovered last month after slumping to a nine-month low in May, as restrictions to curb the spread of the pandemic were eased and mobility picked up.
Fuel consumption, a proxy for oil demand, rose 8 per cent from May to 16.34 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed on Friday.
A second Covid-19 wave, which stalled mobility and dulled economic activity, dragged fuel consumption to its lowest since August in May.
Pandemic infections have, however, eased from May's peak, prompting a 1.5 per cent year-on-year increase in fuel demand last month.
"Going forward we see road fuel demand reaching pre-pandemic levels by the end of the year since the vaccination program has already come a long way," said Rystad analyst Simen Eliassen, adding that jet fuel could also recover by 115,000 bpd.