Indian fuel demand was relatively stable in July compared to June, despite a prolonged lockdown to contain the COVID-19 outbreak and low seasonal demand for transport fuels during the July-September monsoon, according to R Ramachandran, refineries director at state refiner Bharat Petroleum Corp Ltd (BPCL). Earlier this month, state refiners released data showing that India’s fuel demand recovery had stalled in the first two weeks of July.
BPCL is operating its refineries at an average of 70% of capacity. So far, the company has no plan to ramp up throughput as it is still working through its oil product stockpiles at depots and refineries to supply its retail fuel stations. BPCL will adapt its operating rates based on market demand rather than just ramping up throughput, Ramachandran noted.
BPCL maintains a 100% operating rate at its 240,000 bpd Mumbai refinery, while its 156,000 bpd Bina refinery is running at 80% of capacity after a shutdown earlier this month. The 310,000 bpd refinery in Kochi is operating at just 35% due to a shutdown at its 200,000 bpd CDU.
India’s diesel consumed stood at 1.57 million bpd in June. Meanwhile, gasoline, jet fuel, and LPG consumption reached 642,000 bpd, 58,000 bpd, and 2.076 million tons last month, respectively, data from the country’s oil ministry showed. Many Indian states have imposed stringent lockdowns as COVID-19 case rose by around 50,000 every day, with total infections near 1.5 million.
