India's fuel and power demand bounced back in June as states lifted curbs on the back of declining Covid-19 cases across the country, market and government data show. Petrol consumption posted a monhtly growth of 15% and diesel 12% in the first fortnight of June. Yet the sales volume of petrol was 3.5% lower than a year ago and 21% down from the same period of 2019. Consumption of diesel, a proxy for economic activities, had posted a monthly fall of 16% and petrol 17% in May as the second Covid-19 wave prompted lockdowns in states, especially the industraialised ones. Jet fuel consumption during the first half of june was sequentially down from the same period of May and lower than year ago. Demand for LPG, or household cooking gas, was marginally down from May but 14.6% higher than the same period of more than the comparable period of 2019. The Reserve Bank of India was second only to Turkey in cond only to Turkey in terms of reserves transfered to the government as a percentage of gross domestic product (GDP) for the fiscal year. In the RBI stood fourth when ranked by the ration of surplus as a percentage of GDP. The central bank, however, said that the transfer will not impact its operations. Last month the RBI transferred a Rs 99,122 crore surplus to the government 73% higher than the crore paid out. "An aspect of the annual report that has raised considerable heat and dust in the media is the surplus transferred to the government. Mainly stemming from saving on balance sheet provisions and employees supernnuation and other funds, the surplus constitutes just of GDP the RBI said. The states of the economy report published by the RBI said that the surplus transfer ratio was low enough to enable the central bank to conduct monetary policy free of fiscal dominance.
