Covid-19 impact: Domestic demand for petrol, diesel, ATF & shipping fuel drop 10%

New Delhi: Domestic demand for petrol, diesel, jet fuel and shipping fuel have all contracted 10% in the first fortnight of March, the first such decline in several years, as the Covid-19 pandemic severely restricts public movement and slows economic activity.

Sales are dropping at petrol pumps and compressed natural gas (CNG) filling stations across several states in a sign that March would turn out to be the worst month in several years for fuel consumption despite fall in pump prices. Drop in sales volume would hit earnings of refiners and fuel retailers that are already facing deep inventory losses this quarter due to the oil price collapse.

“The petroleum industry is witnessing the impact of Covid-19 on sales of all petroleum products,” Indian Oil Corp said in an emailed response to ET’s query. “The overall demand of liquid fuels has gone down by 10-11% for the first fortnight of March 2020. Due to restriction in movement and travel advisories, the ATF sales have dropped by over 10%. The bunker fuel sales are also down by approx 10%.”