India has extended its nationwide lockdown by another month to 31 August in light of a record rise in Covid-19 cases, after lockdown relaxations from mid-May led to a surge in infections.
The government has allowed gyms to open but educational institutions, cinemas and bars will stay shut. International flights will not be allowed this month unless under special conditions. This will weigh on demand for jet fuel.
State governments are also imposing localised lockdowns in parallel, which are more stringent. West Bengal state extended the lockdown until 31 August and will restrict economic activities on certain days of the month. There is no pattern to sporadic lockdowns imposed by states, which has hurt economic activity and fuel demand.
India's transport fuel demand declined in the first half of July from a month earlier, according to state-controlled refiner IOC. Diesel consumption fell by 18pc and gasoline demand declined by 6pc in the first two weeks of July from a month earlier. Demand for transport fuels in August will stay at around July levels because of localised lockdowns and the monsoon, an official from state-controlled refiner Bharat Petroleum said.
Cases of Covid-19 rose by a record 52,000 in the last 24 hours to around 1.6mn. India has the third highest Covid-19 case count after the US and Brazil, and had started a lockdown on 25 March.
