Preliminary data from India’s oil ministry showed refining throughput in the country rose to 4.28 million bpd in June, increasing from 3.86 million bpd in May but 14% lower than 4.96 million bpd in June last year. In the fiscal year ended March, refinery run rates in India stood at 5.09 million bpd but slumped to 3.6 million bpd in April due to the coronavirus pandemic which forced the government to impose nationwide lockdown and prompted widespread business shutdowns.
According to the data, state refiners processed 2.5 million bpd of crude last month, 10% below 2.77 million bpd in the same month last year but improving from 2 million bpd in May. India’s biggest state refiner IOCL processed 1.36 million bpd of crude in June, increasing sharply from 1 million bpd in May and close to 1.42 million bpd in June 2019.
On the other hand, throughput by Indian private refiners fell to 1.48mn b/d last month from 1.6mn b/d in May and 1.76mn b/d a year earlier. RIL processed 1.14mn b/d in June, lower than 1.26mn b/d in the previous month and 1.34mn b/d a year ago. Meanwhile, Nayara Energy processed an average of 341,000 bpd in June, down from 369,000 b/d in May and 421,000 b/d in June last year.
Despite the increase in June, the surging number of new COVID-19 cases is expected to put a cap on the upward momentum. The recurring outbreaks have prompted a series of localised lockdowns which weigh on fuel consumption and disrupt supply chains. Data from state-run refiners showed that their gasoline and diesel sales dropped by 6% and 18%, respectively in the first half of July.
