The sale of refined fuels, a proxy for oil demand, fell 16% year-on-year in August in India, its sixth consecutive slide. It also fell 7.5% from July, the largest month-on-month decline since April, government data showed.
Fuel demand declined as a surge in coronavirus infections continue to strangle economic activity and transportation.
Diesel consumption, a key parameter linked to economic growth and accounts for about 40% of overall refined fuel sales in India, fell by about 12% month-on-month. On an annual basis, demand for diesel declined about 20.8%. Falling monthly diesel sales indicate a slowing economic and industrial activity.