Petrol, diesel demand lowest in last 20 years
The consumption of petroleum products in the country declined 9.1% for the first time in 20 years due to the Corona pandemic. The reason for this is believed to be strict lockdown and fear of corona. Total consumption of petroleum products stood at 194.63 million tonnes in FY 2020-21, compared to 214.12 million tonnes last year. This information was released by the government on Friday. Such a large decline in fuel consumption was observed during 1998–99.
Diesel-Petrol Consumption Decreased
The consumption of the most used fuel diesel in the country decreased the most. Diesel consumption declined by 12% to 72.72 million tonnes during the entire financial year, while demand for petrol was down by 6.7% to 27.95 million tonnes. LPG consumption was positive during this period. Its demand rose 4.7% to 27.59 million tonnes as against 26.33 million tonnes in the previous financial year.
In the beginning of the financial year i.e. the nationwide lockdown in March, all other businesses along with factories came to a standstill. In addition, almost all types of transportation, trains and flights were halted. It lasted until early June. Since June, the government made several concessions as part of the unlock process. But by then the country’s economy was badly affected.
Economic situation also deteriorated
GDP declined by a historic 23.9% in the first quarter. It is expected to fall by 7-8% for the entire financial year. At the same time, the second wave of Corona may once again shock the country’s economic recovery.
Consumption figures improved in March this year
Fuel demand figures during March in 2021 are good, as the demand situation was not good due to the pandemic in March last year. According to the data, in March 2021, fuel demand grew by 18% to 18.77 million tonnes. In this, the consumption of petrol has increased by 25.7% and diesel by 27% compared to the year before.
