Indian Refiners Starts Exporting Diesel to China

Indian refiners have started exporting commodities like diesel, a large share of which is going to China, where economy is on a recovery path. This comes as fuel sales have dropped by more than half and product storage facilities are getting exhausted.

According to reports, the demand for diesel for the first half of April dropped 61 per cent compared to the same time last year in India. On the other hand, China is seeing a demand recovery in infrastructure and manufacturing sectors. Apart from China, countries, like South Korea and Japan, have also placed quotes for importing petroleum products from India amid lockdown.

“We are slowly filling up our inventory capacity in storage tanks across the country. While this is happening, in order to give our refineries some leverage to move some throughout up or keep it at least at what it is now, we are importing some quantity of diesel, Very Low Sulphur Fuel Oil (VLSFO) and naphtha, too, from coastal refineries,” said a persons close the development.