India's Minister of Petroleum & Natural Gas Dharmendra Pradhan on Tuesday said that domestic oil consumption could regain its pre-coronavirus level in the next few quarters. The country imposed strict nationwide lockdown to combat the pandemic, which also caused oil demand to fall dramatically in April through August. Demand has remained weak since the government eased lockdowns due to surging coronavirus cases and heavy monsoon. However, gasoline consumption hit a seven-month high in September, highlighting a gradual improvement in India's refined product demand.
Pradhan also admitted that the government faced delays in divesting its 52.98% stake in BPCL. The deadline to submit bids for the stake has been delayed four times to November 16. BPCL accounts for 14% of India's 5.2 million bpd refining capacity and 25% of the country's fuel market share. ExxonMobil, Aramco, ADNOC, and Rosneft will likely participate in the bidding process.
The minister also said that India is targeting to expand refining capacity by 40% in 2030 from its current refining capacity of 250 million tons/year. The 1.2 million Ratnagiri refinery project is the central piece of the plan. It will be built by a joint venture of Aramco, ADNOC, and state refiners IOCL, HPCL, and BPCL. Besides the refining ambition, India also has plans on renewable energy, decarbonisation, and reducing fossil fuel subsidy.
