Fuel Demand To Recover To Pre-COVID Level By End Of The Year: Report

Local fuel consumption- a proxy for oil demand - in May slumped to its lowest since last August as lockdowns and restriction in several states stalled mobility and muted economic activity.

The country's fuel demand, hit by a deadly second wave of coronavirus, would recover to pre-pandemic levels by the end of this year, oil minister Dharmendra Pradhan said on Tuesday. Local fuel consumption- a proxy for oil demand - in May slumped to its lowest since last August as lockdowns and restriction in several states stalled mobility and muted economic activity. Indian fuel demand showed signs of resurgence this month due to the lifting of lockdowns by states and a gradual pick-up in economic momentum, Pradhan said at an energy summit organised by BNEF. India, the world's third-biggest oil importer and consumer, imports over 80 per cent of its oil needs. Asia's third-largest economy has been hit hard by a spike in global oil prices, with its tax-heavy retail prices of petrol and diesel touching record highs.