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India s June fuel demand recovers as lockdowns ease and mobility picks up

India s fuel demand recovered last month after slumping to a nine-month low in May, as restrictions to curb the spread of the pandemic were eased and mobility picked up. Fuel consumption, a proxy for oil demand, rose 8% from May to 16.34 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed on Friday. A second Covid-19 wave, which stalled mobility and dulled economic activity, dragged fuel consumption to its lowest since August in May. Pandemic infections have, however, eased from May s peak, prompting a 1.5% year-on-year increase in fuel demand last month. Going forward we see road fuel demand reaching pre-pandemic levels by the end of the year since the vaccination program has already come a long way, said Rystad analyst Simen Eliassen, adding that jet fuel could also recover by 115,000 bpd.

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