Diesel demand dropped 12 per cent in August over the previous month as local lockdowns, high prices and slower economic growth stalled the recovery. Petrol sales, however, grew 5.5 per cent month on month but both fuels remained much lower than the last year’s levels. This is the second straight month of decline diesel sales dropped 12.5 per cent in July over June worrying industry executives that the recovery may take longer than expected. Compared to August of last year, sales of diesel and petrol are down 22 per cent and 8.5 per cent respectively, as per sales data from state-run fuel retailers that control 90 per cent of the domestic market.

Jet fuel sales rose 8 per cent from July but were down 62 per cent compared to August 2019. Sales of liquefied petroleum gas (LPG), mainly used for cooking, grew 0.5 per cent month on month but fell 4 per cent from last year. Diesel makes up 40 per cent of the country’s oil demand and is considered a good gauge of economic activity due to its wider application in commercial transport and farming.