Indian state-controlled refiner Bharat Petroleum (BPCL) is seeing higher crude runs at its refineries, with demand gradually increasing as the country relaxes more Covid-19 restrictions.
BPCL is utilizing 80-85pc of capacity of its 240,000 b/d Mumbai refinery and around 42pc of its 310,000 b/d Kochi refinery on the southwest coast in Kerala state. Its 156,000 b/d joint-venture refinery with state-owned Oman Oil in Bina in central India is operating at 55-60pc capacity.
Bina had processed around 166,000 b/d of crude in March, Mumbai 307,000 b/d and Kochi 331,000 b/d.
The company had forecast its refineries to operate at an average capacity of around 30pcin the immediate aftermath of the country's Covid-19 lockdowns, which started on 25 March. Indian refiners had warned of refinery closures as extensions of the lockdowns further cut into fuel demand.
India's oil product tanks were full in mid-April and refinery throughput will also increase as the products are gradually used, said BPCL director of refineries R Ramachandran. He expects demand to increase in May as the government open up more of the country after the third phase of its Covid-19 lockdown ends on 17 May.
Diesel demand is increasing after the government allowed more agricultural activity, while transport operators started trucking goods. India's diesel sales dropped to 808,000 b/d last month from 1.8mn b/d a year earlier amid the Covid-19 restrictions. Gasoline demand fell to 274,000 b/d from 693,000 b/d a year earlier.
The federal government has announced a 20 trillion rupees ($266bn) stimulus to revive the economy, which is expected to revive fuel demand.
