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On an annual basis, demand for diesel declined about 20.8%. Falling monthly diesel sales indicate a slowing economic and industrial activity.
India’s economy contracted 23.9% in the June-quarter as consumer spending, private investments and exports collapsed during the lockdown imposed in late March to curb the coronavirus outbreak.
India’s economy is projected to contract 11.8% on the year in the current fiscal year beginning from April, India Ratings and Research, a domestic arm of ratings agency Fitch, said on Tuesday. The economy is projected to contract 11.9% in the current quarter.
Heavy floods in some states, such as Gujarat, Assam and Odisha, also disrupted life and hit industrial and construction activity.
Sales of gasoline, or petrol, fell by 7.4% from a year earlier to 2.38 million tonnes, although it rose 5.3% from 2.26 million tonnes in July.
August naphtha sales decreased by 24.6% to 1.07 million tonnes from a year earlier and was down 16.4% from July.
Sales of bitumen, used for making roads, rose 39.1% on an annual basis, but was down about 18% month-on-month. <\/div>\n