Indian road transport fuel demand rises 11% in 1H June as Covid curbs ease

London, (Quantum Commodity Intelligence) – Demand for road transport fuels rose 11% in the first half of June compared to the same period a month earlier as Covid restrictions on travel eased, according to market sources citing Indian refinery data.

Domestic demand for gasoline rose to above 500,000 barrels per day (bpd) in the first two weeks of the month, up from 443,000 bpd in the first half of May.

That rise of 13% was mirrored in demand for diesel, which climbed from 1.1 million bpd in the first half of May to 1.23 million bpd in the first half of June, up 12%.

The figures are from refiners that account for 90% of fuel demand in the world's third-largest oil consumer and come on the back of Google mobility data that shows a sharp rise in travel as the country recovers from its second wave of Covid-19 infections.

Seven-day averages for infections in India are now at a 10-week low, allowing regional restrictions to be lifted, including a tourist centre at the country's number one visitor attraction the Taj Majal.

India is due to release official figures for June around July 11.