Weak diesel demand signals a slow rebound for industrial India

Diesel is a bellwether of industrial activity in India

It’s set to be a slow crawl back to pre-virus levels for Indian energy demand with diesel, the most-used fuel, holding back the recovery.

While demand for diesel, which accounts for around 40% of Indian fuel use in a normal year, rebounded quickly after the the world’s biggest lockdown was imposed in March, the recovery has since slowed. The annual growth rate for diesel consumption won’t get back to pre-virus levels until the year ended March 2022, said Mukesh Kumar Surana, chairman of Hindustan Petroleum Corp.

Used in factories, construction and agriculture as well as powering the truck and bus fleets, diesel