Oil demand in India, the world’s third-biggest consumer, has plummeted by about 70% as the country puts its 1.3 billion population under a nationwide lockdown, according to officials at its state refiners. According to them, oil demand in April could fall by about 50% year-on-year if the government did not prolong the measures.
Analysts even expected that India’s oil demand could fall by as much as 3.1 million bpd, about a third of the 10 million bpd supply cut touted by US President Donald Trump last week. According to government data, India consumed 4.48 million bpd of oil in April last year, including some 690,000 bpd of gasoline and 1.8 million bpd of diesel.
The collapse in fuel demand prompted HPCL, MRPL, and IOCL to declare force majeure for some April crude shipments while slashing operating rates at their refineries. BPCL was reportedly considering following suit. Analysts expect refinery runs in India to fall by 40% month-on-month to just 3 million bpd this month.
