Wednesday, June 23News That Matters

Indian April gasoline demand dips; coronavirus wave clouds outlook

Consumption of gasoline, a proxy for oil demand, fell 9.4% to 17.01 million tonnes from March, knowledge from the Petroleum Planning and Prognosis Cell (PPAC) of the Ministry of Petroleum & Natural Gas shows

Topics

India gasoline demand | Coronavirus | Gasoline prices

India’s April gasoline demand slipped from the earlier month because the sector’s third perfect oil consumer bore the brunt of raging coronavirus infections, with the likelihood of extra restrictions weighing on the outlook.

Consumption of gasoline, a proxy for oil demand, fell 9.4% to 17.01 million tonnes from March, knowledge from the Petroleum Planning and Prognosis Cell (PPAC) of the Ministry of Petroleum & Natural Gas confirmed on Tuesday.

On a yearly basis, demand surged 81.5% from April 2020 lows, when consumption plunged to the lowest since 2006 as coronavirus restrictions during India’s first wave battered the economy. This represents the ideal 365 days-on-365 days amplify since knowledge going abet to about 1999.

“India’s second wave of virus infections and diverse containment measures presents an unsure outlook for the gasoline demand,” Edward Moya, senior market analyst at OANDA said.

India is nearing 400,000 infections a day and the second surge has elevated requires a nationwide lockdown and compelled many states to impose harder restrictions.

High Minister Narendra Modi’s resistance to a pudgy lockdown has supported consumption in the temporary, Moya said.

Gasoline demand had reached pre-pandemic ranges of around 18.8 million tonnes in March, the very ideal stage since slay-2019.

However, the pandemic has led the country’s high advise oil refiners to nick abet processing runs and crude imports, company officials told Reuters on Tuesday.

This pattern is at risk of lengthen into Would perchance merely as Indian refineries are lowering their refinery runs, UBS analyst Giovanni Staunovo said, adding that as soon as mobility restrictions had been lifted, demand must collected restoration abruptly.

Diesel consumption, a key parameter linked to financial boost in India, fell 7.5% to 6.68 million tonnes from the earlier month, but surged 105.5% 365 days-on-365 days.

Gasoline, or petrol, sales fell 13.1% to 2.38 million tonnes in April- the lowest stage since August 2020, and had been 145% greater in comparison with same duration a 365 days prior to now.

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