The rise in petrol prices has broken the backs of the masses; A drastic reduction in oil consumption by millions of tons

Demand for both petrol and diesel has plummeted due to rising prices of petroleum products in the country. Consumption of petroleum products in the country fell by 4.9% to 17.21 million tonnes in February.

Notably, crude oil consumption in the country has been the lowest since September. The people have become helpless as petrol and diesel prices have skyrocketed in the last one month. Consumption of petroleum products in the country fell by 4.9% to 17.21 million tonnes in February.

Such a reduction in the consumption of crude products

Diesel is the most used fuel in the country. Its consumption has dropped by 8.5% and now stands at 6.55 million tonnes per month. Petrol consumption, on the other hand, fell 6.5% to 2.4 million tonnes.

Consumption of naphtha has not changed but the use of bitumen used for road construction has decreased by 11%. On the other hand, cooking gas, which has also seen a skyrocketing price, saw its sales rise by 7.6%.

Corona had already reduced crude consumption in the country

In 2020, India's oil demand fell by 10.54%. The demand for crude in the country was 44 lakh barrels per day in 2020 as against 49 lakh barrels per day in 2019. However, OPEC expects India's demand to increase by 13.6% to about 5 million barrels per day by 2021.

Corona's control increased transport but also uncertainties in the aviation sector

The country has raised hopes with a positive GDP in the last quarter of 2020. Demand for oil is expected to increase as industries resume in the country. However, due to the various lockdowns in Corona, the number of air travel is still as low as 10%.