Refined fuel consumption in July slipped from June, according to preliminary data, indicating slower industrial activity as high retail prices, floods and renewed COVID-19 lockdowns in parts of India dented demand.
Local fuel sales — a proxy for oil demand — plunged to historic lows in April when India imposed a country-wide lockdown.
State-refiners’ diesel sales, which account for a fifth of overall refined fuel sales in India, fell by 13% to 4.85 million tonnes in July from June, and by about 21% from a year earlier, Indian Oil Corporation’s (IOC) data showed.
Falling local sales and subdued refining margins have forced refiners to curtail crude processing. IOC, India’s top refiner, doesn’t see fuel sales recovering to pre-COVID-19 levels in the near future.
