Current Affairs In Detail

Fuel demand may decline to 40 percent in April amid lockdown
Fuel demand may decline to 40 percent in April amid lockdown

he decline in the fuel demand will impact pricing and increase borrowing costs for oil marketing companies.

09 April 2020 Current Affairs:A report by India Ratings stated that the fuel demand witnessed a fall by around 20% in March amid the lockdown due to the COVID-19 pandemic. Also, capacity utilization levels have fallen to 50% in March.

Report Highlights:
♦ The decline in the fuel demand will impact pricing and increase borrowing costs for oil marketing companies. 
♦ It stated that the fuel demand will decline further to 40% in the month of April 2020.
♦ This is due to the 21-day national lockdown because of which individuals have remained indoors, shops and businesses shut, and vehicular movement, including the airlines, railways, trucks and private vehicles, remaining off the roads.
♦ The report also stated that the capacity utilization has remained high for oil marketing companies (OMCs) whose sales to own production ratio is significantly high, as they lowered external purchases while ensuring their refineries run at full utilization.