India’s fuel demand contracted by a massive 9.1 per cent in the financial year ended March 31, the first in more than two decades, as a stringent lockdown imposed to curb the spread of the pandemic pummelled economic activity, government data showed on Friday.
India consumed 194.63 million tonnes of petroleum products in 2020-21 as compared with 214.12 million tonnes demand in the previous year, according to the latest data released by the oil ministry’s Petroleum Planning and Analysis Cell (PPAC).
This the first time that the fuel consumption has contracted since 1998-99, the most historical year for which government data is available.
The demand contraction was led by diesel, the most-consumed fuel in the country. Diesel consumption fell 12 per cent to 72.72 million
tonnes while petrol demand shrank 6.7 per cent to 27.95 million tonnes.
The government imposed a nationwide lockdown at the end-March of last year, shutting down factories and businesses, halting most road transport, canceling flights and stopping trains. The lockdown was lifted in stages beginning June. The GDP is estimated to have contracted by 7-8 per cent in 2020-21 after economic activity showed signs of recovery in last quarter of 2020.