India's oil refineries scale back output as coronavirus chokes fuel demand

Many refineries have curbed output with fuel demand hammered by travel restrictions as the pandemic forced people to stay home and stalled economic ac
...
Indian state retailers sold 50% less refined fuel in the first two weeks of April than the same period a year ago as the lockdown hit transportation and industrial activity. (Bloomberg)
Indian state retailers sold 50% less refined fuel in the first two weeks of April than the same period a year ago as the lockdown hit transportation and industrial activity.

India's crude processing in March fell 5.7% from a year earlier, its biggest drop since September, as the coronavirus crisis and travel restrictions to curb its spread dented fuel demand and forced refineries to cut output.

Refiners processed about 21.20 million tonnes, or 5.01 million barrels per day (bpd), of oil last month, provisional government data showed on Wednesday. That was lower than the 5.32 million bpd processed in February and in March 2019.

Also check these Vehicles

Find more Cars
Benling India Believe (HT Auto photo)
BatteryCapacity Icon3.2 kWh Range Icon120 km
₹ 1.26 Lakhs
Compare
Benling India Benling Kriti (HT Auto photo)
Range Icon60 km/charge
₹ 56,940 - 66,121
Compare
View Offers
Benling India Benling Aura (HT Auto photo)
Range Icon120 Km/charge
₹73,000
Compare
Benling India Benling Falcon (HT Auto photo)
Range Icon75 km/charge
₹ 62,200 - 71,248
Compare
View Offers
Hcd India Nps Cargo (HT Auto photo)
Range Icon70 km/charge
₹ 54,500 - 58,500
Compare
View Offers
Kinetic Green Flex (HT Auto photo)
BatteryCapacity Icon3 kWh Range Icon120 km
₹ 1.10 Lakhs
Compare

Crude production also declined 5.5% in March from a year earlier to around 2.70 million tonnes or 0.64 million bpd.

Many refineries have curbed output with fuel demand hammered by travel restrictions as the pandemic forced people to stay home and stalled economic activity.

India on March 24 announced a three-week lockdown to fight the coronavirus, which has been extended until May 3 as the virus cases continue to increase.

The country has, however, announced a roadmap to restart some industrial activity in locations that are not coronavirus hotspots to try to revive the economy.

Also Read : Indian oil tanks are 95% full as refiners dump fuel in haste

Indian state retailers sold 50% less refined fuel in the first two weeks of April than the same period a year ago as the lockdown hit transportation and industrial activity, industry sources said last week.

The International Energy Agency (IEA) in its latest report estimated India's annual fuel consumption - a proxy for oil demand - will decline 5.6% in 2020 to 4.73 million barrels per day (bpd), compared with growth of 2.4% forecast in its March report.

Also Read : Transporters demand reduction in fuel prices, suspension of toll collection

India's annual fuel demand grew 0.2% in 2019/20, its slowest in over two decades, dragged down by a hefty 17.8% decline in local consumption in March as steps taken to prevent the spread of Covid-19 dented transport fuel sales.

Natural gas output fell 14.4% to 2.41 billion cubic metres from the same period last year.

First Published Date: 23 Apr 2020, 08:44 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.