Defeating coronavirus, getting back on track! Good news for Indian economy - All you need to know

In a good news for Indian economy amid Covid-19 pandemic, 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 products in 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.

Here are signs of Indian economy getting back on track, as per details shared by Ministry of Petroleum & Natural Gas:-

Petroleum products consumption

-With the gradual lifting of lockdowns and beginning of unlocking ofthe economy in a phased manner, allowing resumption of Industrial activity and 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

- Demand of Industrial fuels such as Sulphur, Petcoke and Naphtha reached to levels of 89.3%, 118% and 80.7% respectively, while marine fuels reached to a level of 138.5 % vis-a-vis corresponding period last year. The crude oil throughput of OMCs refineries has alreadycrossed 85% as on date, from as low as of 55% in the beginning of April’20.

Industry

- 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.

Agricultural activities

- With timely arrival of Monsoon and pick-up in agricultural activities during kharif season, there was marked acceleration in Diesel consumption and gained a 96% onApril ’20 levelvolume (5.5 MMT in June’20 from 2.8 MMT in Apr’20)

LPG

- Demand for the LPG fuel continues to rise, with robust growth of 16.6% in June’20 over June’19.

Aviation

- 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)

Road construction

- 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.