Gasoline usage in India jumps in March as commuters prefer cars

Motor fuel demand rose to 88,380 tons per day last month, the highest level since November last year, according to official data.

Gasoline demand in India hit a four month high in March as millions of people favored cars over public transport, with the world’s most populous nation seeing a resurgence in virus cases.

A motorcyclist exits an Indian Oil Corp. gas station in Bengaluru, India, on Thursday, March 4, 2021. India�s record pump prices of gasoline and diesel are the newest threat to the economy's nascent recovery, as high local taxes on retail fuel risk fanning inflation and driving a wedge between the objectives of fiscal and monetary policy makers. Photographer: Dhiraj Singh/Bloomberg (Bloomberg)

Motor fuel demand rose to 88,380 tons per day last month, the highest level since November last year, according to official data. On the year, gasoline sales surged 27% versus last year when local demand collapsed due to the roll-out of strict lockdowns to stem the spread of Covid-19.

India’s daily overall consumption of oil products fell on the month in March, as demand for diesel, the most popular fuel, declined. While the pandemic has provided a shot in the arm for gasoline use -- more are opting for private transport over buses and trains -- the roll-out of lockdowns as India suffers a second wave of coronavirus infections may lead to a halt in an oil demand recovery.

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Government authorities are now mulling a re-imposition of strict restrictions as the state of Maharashtra faces a surge in infections and widespread vaccine shortages. India has prohibited exports of the drug Remdesivir, used to treat Covid-19, while the streets of Mumbai were deserted.