Petroleum Products demand limping back to normal
Published: Jul 02, 2020
By TIOLCORPLAWS News Service
NEW DELHI, JULY 02, 2020: India's overall petroleum products consumption, which had nosedived in last week of March and April this year, is now steadily getting to its pre-lockdown levels in June 20, as emanating from the PSUs' (IOC, BPC and HPC) sales figures.
The sales of petroleum productsin India, the world's third biggest oil consuming nation, had fallen to the lowest since 2007, due to the nationwide lockdown, necessitated to prevent the spread of COVID-19 pandemic.
With the gradual lifting of lockdowns and beginning of unlocking ofthe economy in a phased manner, allowing resumption of Industrial activity & movement of people, total petroleum products consumption has reached to 88% in June 20 (11.8 MMT) compared to June'19 (13.4 MMT), indicating the increase in production/industrial/transportation activities, across all segment of economic spectrum.
Demand of Industrial fuels such as Sulphur, Petcoke and Naphtha reached to levels of 89.3%, 118% &80.7% respectively, while marine fuels reached to a level of 138.5% vis-a-vis corresponding period last year. The crude oil through put of OMCs refineries has already crossed 85% as on date, from as low as of 55% in the beginning of April 20.
On Industry basis, in June 20,the petrol consumption has reached to 85% of last year level (2.0 MMT in June 20 vs 2.4 MMT in June 19) and diesel reached to 82% (5.5 MMT in June 20 vs 6.7 MMT in June 19) compared to last year level.
With timely arrival of Monsoon & pick-up in agricultural activities during kharif season, there was marked acceleration in Diesel consumption &gained a 96% onApril '20 levelvolume (5.5 MMT in June'20 from 2.8 MMT in Apr 20)
Demand for the LPG fuel continues to rise, with robust growth of 16.6% in June 20 over June 19.
With opening of Aviation sector domestically with 33% capacity and repatriation flights under the Vande Bharat Mission for international passengers, ATF consumption registered 4 times volume increases from April 20 level (52 TMT in Apr 20 Vs 201 TMT in Jun 20)
Similarly, with restart of major road construction projects, Bitumen consumption has registered a solid growth of 32% in June'20 compared to June'19.
Overall the consumption of all petroleum products has significantly increased from April 20 level of 49% (6.6 MMT in Apr 20 vs 13.4 MMT in Apr 19) to 88% level in June 20 (11.8 MMT in June 20 Vs 13.4 MMT in June 19), as this comes in the backdrop of Indian economy gradually getting momentum with the ease of lockdown restrictions and revival of economic activities that are slowly getting back on track.