NEW DELHI: The sharp fall in fuel demand in India over April and May has resulted in a steep decline in its crude imports, with May recording the largest year-on-year fall since 2005 at 22.5 per cent. At 14.6 million metric tonnes (MMT), May oil imports were also the lowest in terms of volume since 2015, according to data released by the Ministry of Petroleum’s Petroleum Planning and Analysis Cell (PPAC). India had imported 18.86 MMT in May 2019.
April had been the month which experienced the most stringent lockdown, beginning March 24, and resulted in a proportionately massive demand contraction in transport fuels. Petrol consumption went from 2.51 MMT in February 2020 to 2.15 MMT in March to a multi-year low of just 0.97 MMT in April. Diesel—the primary fuel for road freight transport—saw demand go from 7.16 MMT in February to 5.65 MMT in March to just 3.25 MMT in April—down by 55.6 per cent compared to April 2019.
However, with lockdown relaxations, fuel consumption began clawing its way back. Petrol demand rose to 1.76 MMT and diesel to 5.5 MMT during the month—still nearly 36 per cent and 25 per cent lower than May last year, sharply rising compared to April. But, crude consumption has trended differently, falling by a larger margin in May. Imports fell by a lesser 16 per cent in April compared to a wider 22.5 per cent in May.