India’s crude oil imports fell to the lowest level in ten years in July due to an extended nationwide coronavirus lockdown, preliminary oil ministry data showed. Last month, the country’s crude oil imports fell by a record 36% from a year earlier to the lowest since April 2011 at 2.92 million bpd. India’s crude oil imports also dropped from 3.34 million bpd in June.
Many Indian states reimposed or extended their localised lockdowns as COVID-19 cases continue to increase. This resulted in reduced economic activity and disrupted supply chain, which in turn, forced Indian state-run refiners to slash runs to as low as 75% in July-August from over 90% in early July. Demand for diesel was also lower because of the monsoon season in July through September.
India’s total refining throughput increased to 4.28 million bpd in June from 3.86 million bpd in the previous month. However, the Indian government is expected to extend again the nationwide lockdown which is supposed to end on August 31, raising a doubt that the increase in refining throughput will sustain.
Analysts expected India’s oil imports to stay below year-ago levels this month as transportation fuel consumption remained weak. State-controlled refiners said gasoline consumption rose slightly by 2% month-on-month in the first two weeks of August but fell by 6% year-on-year. Demand for diesel and jet fuel also plunged by 23% and 66% year-on-year, respectively.
