Bid & Tender
IndianOil, Mangalore Refineries Declare Force Majeure on Mideast Crude Purchase

Date : Mar 31, 2020

Two Indian refiners has declared force majeure on crude purchases from the Middle East on Friday after fuel demand plummeted due to a nationwide lockdown to stem the spread of coronavirus and the companies' tanks are full, sources said.

 

Prime Minister Narendra Modi has asked India's 1.3 billion people to stay indoors for three weeks in the world's biggest lockdown, shutting down Asia's third-largest economy and leaving millions of economically vulnerable people without work.

 

This has led to a sharp decline in local fuel demand, leading companies to cut crude refining as their storage tanks are full to the brim.

 

Indian Oil Corp (IOC), the country's top refiner, has reduced its crude processing by 30% to 40% and shut its naphtha cracker plant in northern India because of falling demand and "to avoid tank top-up situation", the company said in its force majeure letter to crude suppliers.