India's government announced today it will extend its ban on commercial passenger flights by yet another month, delaying further hopes for a recovery in the country's jet fuel demand.
The ban will now remain in effect until 30 September, but just as before it will not apply to international cargo flights and flights specifically approved by India's Directorate General of Civil Aviation (DGCA). International flights may be allowed on selected routes on a case by case basis, according to the DGCA.
International and domestic flights were grounded in June 2020 when India was under a total lockdown to fight the pandemic, but repatriation flights and flights within bilateral agreements with specific countries have continued to operate. India currently has such "travel bubble" agreements with at least 28 countries, according to the ministry of civil aviation.
International aircraft movement in India rose by 17pc on the month in July, according to the latest data compiled by state-owned Airports Authority of India, even though as many as 21 countries have either banned flights or issued guidelines for passengers travelling from India, according to an advisory by India's Bureau of Immigration issued in early June.
At the same time, the easing of lockdowns in line with lower daily Covid-19 cases in India encouraged domestic passengers to travel. Domestic air passenger traffic rose by 61pc on the month in July and by 138pc from the same time last year, data from the Directorate General of Civil Aviation showed.
India's jet fuel demand averaged 74,000 b/d in July compared with 63,000 b/d in June, but remained below 158,000 b/d in July 2019, according to data from state-controlled refiners that account for around 90pc of the country's fuel sales.
India's biggest state-controlled refiner IOC said on 30 July it expects jet fuel consumption will reach pre-pandemic levels by the end of the April 2021-March 2022 fiscal year.
