Coronavirus outbreak is the only thing the world is talking about. All of us know that the pandemic disease has already slowed down the world economy. Almost all the industries are experiencing dips and among them is the fuel industry. The current situation has let the fuel industry experience a slowdown too. Several fuel stations have reported the falling demand for petrol and diesel despite the lowered prices.
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The domestic demand for petrol and diesel dropped by almost 10% as reported at the end of the first fortnight of March 2020. All of us know that the only reason for this drop is the coronavirus outbreak. The demand has reduced for other fuels like jet fuel and shipping fuel. CNG too has seen a drop in demand. Analysing the past, March 2020 has been the worst month in history till now for fuel consumption. FYI, the fuel prices are currently low due to the additional cess introduced by the government.
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Having a look at the other side of the picture, the oil refiners and the retailers are also facing the impact due to the decreased petrol, diesel demand. This is because of the decreased sales volume and therefore piling up inventory. Also, the oil price has collapsed which has lead the dealers into more worries as of now.
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The reason for the decreased petrol, diesel demand is the ‘work from home’ provision that many companies have given to their employees. Also, people are not stepping out as a precautionary measure to the COVID-19. No doubt this has reduced the traffic and the pollution but this has got the oil dealers into serious tension as of now. The demands have dropped significantly because heavy transports like buses and trucks are also at a halt as of now as schools and offices are closed.
Let’s hope the human race gets rid of this virus really soon.
