India’s April lube demand stays high

India’s lubricating oil demand stayed unusually firm in April as economic activity extended its revival following the third wave of the Covid-19 pandemic.

Lube demand of 431,000t in April fell by 8pc from 470,000t the previous month, government data showed.

The month-on-month slowdown is typical following a surge in lube consumption in the month of March as blenders maximised sales before the end of India’s financial year.

The size of the month-on-month slowdown this year was the smallest in five years. It contrasted with a typical drop of more than 35pc during the same period during the last four years.

The firmer-than-usual lube consumption in April was up 20pc from year-earlier levels and the fifth highest in the last eight years.

The unusually strong lube demand contrasted with and helped to balance out the impact of a slump in base oil and lube consumption in China in recent months.

Consumption in China has slowed following the imposition of lockdown measures in key regions like Shanghai to thwart the spread of the Covid-19 virus.

Consumption in India has risen following the relaxation of restrictions as the latest wave of Covid-19 infections passes.

India’s motor fuel consumption has similarly rebounded strongly in recent months as economic and transport activity recovers.