PRADHAN According to the oil minister Dharmendra Pradhan, India has recouped 65% of its consumption for fuel and it is presumed that the demand for fuel will reach just about the pre-pandemic levels next month as economic activities gain momentum after the government’s announcement of an impetus package and staggered easing of COVID-19 restrictions.
“ The world has seen an unprecedented abrasion in fuel demand. Many countries saw refineries being collapsed down, plans being rescheduled. India has to get along better in comparison. After the lockdown began ( from March 25 ), fuel demand has plummeted to 30-35% of the level observed in April 2019. However, major production capacities remained functional. Demand is back at 65% May 2019 level and will reach the pre-Corona level in June,” Pradhan said.
In comparison with the fuel appetite in china, the epicentre of the COVID-19 pandemic and also the world’s second-largest oil consumer has reached 90% of the pre-corona level after losing 40% of the demand in February, according to the IHS market report.
A recuperate in PRADHAN India’s fuel demand stipulates India is regaining momentum and the world’s third-largest energy market is composed to regain its position as the global demand centre. Pradhan added, “ The pace of the consumption growth may change. Two-wheelers will be back as an affordable option to perpetuate social distancing and safety while commuting. PRADHAN The change will be consistent for small cars also giving impetus to petrol. Rising highway traffic, resumption of train service and farm sector activities fill push diesel sales. Aviation fuel will get a boost once flights resume from May 25.”
According to the latest industry data, petrol PRADHAN sales rose 7.5% and diesel sales bouncing 72% in May following the government’s move to ease lockdown strictures to allow from April 2. LPG sales grew 4% and jet fuel sales 6-7% during this period as only select cargo and repatriation flights took to the skies and domestic cooking fuel demand de-escalated after the initial panic-buying triggered by the lockdown and commercial consumption was yet to return.
When asked about current pump prices corresponding to $100 oil price and consumers not getting the benefit of historically low PRADHAN prices because of the government raising fuel taxes by Rs 13 and Rs 16 a litre of petrol and diesel respectively. Pradhan replied it did not put the burden on consumers and will raise resources for welfare schemes, stimulus packages and infrastructure.