India’s Bharat Petroleum (BPCL) is seeing higher crude runs at its refineries, with demand gradually increasing as the country relaxes more Covid-19 restrictions.
BPCL is utilising 80-85 percent of capacity of its 240,000 b/d Mumbai refinery and around 42 percent of its 310,000 b/d Kochi refinery on the southwest coast in Kerala state. Its 156,000 b/d joint-venture refinery with state-owned Oman Oil in Bina in central India is operating at 55-60 percent capacity. Bina had processed around 166,000 b/d of crude in March, Mumbai 307,000 b/d and Kochi 331,000 b/d.
The company had forecast its refineries to operate at an average capacity of around 30 percent in the immediate aftermath of the country's Covid-19 lockdowns, which started on 25 March. Indian refiners had warned of refinery closures as extensions of the lockdowns further cut into fuel demand.
India's oil product tanks were full in mid-April and refinery throughput will also increase as the products are gradually used.
Diesel demand is increasing after the government allowed more agricultural activity, while transport operators started trucking goods. India's diesel sales dropped to 808,000 b/d last month from 1.8 million b/d a year earlier amid the Covid-19 restrictions. Gasoline demand fell to 274,000 b/d from 693,000 b/d a year earlier.
