India’s fuel demand is beginning to flatten after showing signs of returning to life as consumption dipped 11.7 per cent in July, official data showed.

Fuel consumption, a barometer of economic activity in the country, had slumped over 45 per cent in April as the nationwide lockdown halted most vehicular traffic and shut industries. However, with the easing of lockdown restrictions, the demand picked up in May and June with month-on-month increase in consumption numbers.

However, mini-lockdowns imposed by states to contain the spread of the coronavirus seemed to have stopped this recovery, with demand falling 3.5 per cent in July over the previous month.

Fuel demand fell to 15.67 million tonnes (mt) in July, 11.7 per cent lower compared with 17.75 mt consumed in the same month a year ago, and 3.5 per cent lower than the June sales of 16.24 mt.

Consumption of diesel, which accounts for about two-fifth of India’s overall fuel use, fell 19.25 per cent to 5.52mt in July from a year earlier, data released by the Petroleum Planning and Analysis Cell of the oil ministry showed.