Fuel consumption has started to increase, hinting at a pick up in economic activity after months of long break due to the coronavirus lockdown.
Fuel consumption has started to increase, hinting at a pick up in economic activity after months of long break due to the coronavirus lockdown. The consumption of diesel, petrol and aviation fuel grew by 70% in May as compared to the consumption in April when the government had imposed a countrywide lockdown, The Indian Express reported citing data from Union Ministry of Petroleum and Natural gas. However, when compared to February figures, consumption is still low as industries limp towards recovery. Most of this consumption is coming from the aviation industry, which was allowed to ply domestic flights about a month ago. The use of aviation fuel has seen the highest spike in May as it doubled to the April figures last month.
The Indian government had imposed a lockdown in the end week of March bringing economic activities to a grinding halt. The same has been lifted recently under Unlock 1.0 even as cases soar. Meanwhile, the petrol and diesel consumption has revived back to 75% of February numbers while aviation fuel consumption in May was just 16% of February figure. The increase in petrol and diesel consumption comes after the government allowed offices to open starting 5 May. Public movement has also been eased to great extent.
According to the Petroleum Planning and Analysis Cell (PPAC), under the Union Petroleum and Natural Gas Ministry, petrol consumption increased from 973 thousand metric tonnes (MT) in April to 1,769 thousand MT in May, marking an 82% jump. On the other hand, diesel consumption rose from 3,250 thousand MT in April to 5,495 thousand MT in May, which is a 70% jump. Similar trend has also been witnessed in the consumption of aviation fuel, which had witnessed the biggest dip in lockdown months.
Meanwhile, another indicator of revived economic activities is e-way bills which have tripled to 2.55 crore in May as opposed to 86 lakh in April, according to data from GST Network.