Indian Oil Corporation Ltd. (IOCL) has boosted run rates faster than expected after the government relaxed some lockdown restrictions, which increased fuel demand. On May 11, the company said it aimed at raising runs to 80% by the end of May. However, it achieved 74% runs last week and may reach the 80% target his week, an IOCL official said.
The producer also ramps up operating rates at its naphtha cracker and MEG plant in its Panipat refineries due to robust demand for chemicals. Higher throughput is expected to increase Indian purchase of Middle Eastern crude in June to about 70% of their committed term crude volumes. India slashed its crude oil imports by around 50% in May.
Oil minister Dharmendra Pradhan said domestic fuel demand would reach 80% of normal levels by the end of this month. More than 80% of India's agricultural markets have reopened, compared to below 50% in early April. This has increased diesel sales. India extended its national lockdown by two weeks to May 31 but eased some restrictions to factories, agriculture services, and offices.
