Indian Oil Corp Ltd’s (IOC) refineries are working at about 95 per cent of their capability, down from 100 per cent on the similar time final month, two sources accustomed to the matter instructed Reuters. Coronavirus instances have surged in India, resulting in curbs on motion throughout the nation, a transfer analysts say may hit gas demand on this planet’s third-largest oil importer and shopper. An official at IOC, India’s greatest oil refiner, mentioned the cuts in runs at its refineries have been “marginal” however analysts and business officers say there may deeper reductions in output from the nation’s refineries in coming days.”
If cases continue to rise and curbs continue or intensify for a longer period, we may see cuts in refinery runs and lower demand after a month,” an business supply mentioned. Consultancy FGE mentioned it estimates gasoline demand will drop by 100,000 barrels per day (bpd) in April and by greater than 170,000 bpd in May if additional restrictions are imposed
India’s whole gasoline gross sales got here to just about 747,000 bpd in March. Diesel demand is anticipated to contract by 220,000 bpd in April and by one other 400,000 bpd in May, in accordance with FGE. India’s diesel consumption, a key indicator linked to financial development and which accounts for about 40 per cent of general refined gas gross sales in India, was 1.75 million bpd in April. While curbs to limit motion are in place in lots of elements of India, it has not imposed a complete shutdown because it did in March final 12 months
Most companies are nonetheless working usually. Gasoline and diesel gross sales by India’s state gas retailers within the first 21 days of April have been larger than in 2020, business information confirmed, primarily due to decrease demand final 12 months in the course of the full lockdown. Diesel demand was decrease in contrast with the identical interval of 2019, whereas gasoline demand was up two per cent, the information confirmed.
FGE mentioned it had lower its liquefied petroleum gasoline (LPG) consumption estimates for April and May marginally, with the supply of LPG cylinders to households more likely to be hit within the coming weeks with extra lockdown bulletins and journey curbs. LPG gross sales by India’s state retailers within the first three weeks of April fell 1.9 per cent to 1.5 mln tonnes, the information confirmed