India's May oil product demand tumbles to second-biggest post-Covid drop

London, (Quantum Commodity Intelligence) – Demand for oil products in India in May fell 11.3% on the month and recorded the largest drop compared to the 2019 equivalent month since the country's first draconian lockdown in April 2020, according to the Oil Ministry's Petroleum Planning & Analysis Cell Wednesday.

Total product demand measured just 15.11 million mt, down a hefty 1.92 million mt from April this year.

Gasoline, diesel and jet took the brunt of the falls amid the lockdown to curb the spread of Covid, dropping 16.6%, 17.2% and 36.3% respectively from April.

Since the pandemic started, the only time total refined product demand was more depressed over the month compared to the equivalent 2019 level was April 2020, when products demand was down 48.9% at 9.369 million mt.

In May this year demand was down 21.4% from May 2019. By comparison, the average demand during the period January-April this year was only 3.7% lower than in 2019 over the same period.

After the three transport fuels, the next biggest drop in absolute terms in May was for bitumen, which is used for road construction and maintenance, and was down 19.3% on the month to 531,545 mt.

Delhi, Mumbai and several major states began to ease restrictions this week as case numbers in the country's more urbanised areas, where vaccination rates have been higher, fall.

Restrictions in many states remain in place or are easing more slowly, however, with lockdowns continuing to be extended on a weekly basis.