Covid-19 lockdown: Fuel demand likely to slip 40% in April, says report

India is the world's third-largest energy consumer but the Covid-19 lockdown has shut businesses, suspended flights, stopped trains and brought almost the entire vehicular movement to a halt

India's fuel demand, after falling by around 20 per cent in March, is likely to decline further to 40 per cent in April, impacting pricing and increasing borrowing cost for oil marketing companies, according to a report.

The three-week national lockdown ending April 14 has seen individuals remaining indoors, shops and businesses shut, and vehicular movement, including the Railways, airlines, trucks and private vehicles, remaining off the roads.

According to a report by India Ratings, the overall demand for fuel has come down by around 20 per cent, while capacity utilization levels have fallen to 50 per cent in March.