Reports are coming in that refinery utilisations are falling once again after hitting pre-Covid levels. What are the levels right now and how is the demand scenario panning out now that unlocking has begun?
Demand had picked up quite sharply after June and it reached around 88 per cent or so. Now normally in the Q2 of the financial year, because of the onset of the monsoon, demand reduces generally on a tonnage basis. The same effect is being seen this July as well. So it is no different. It is slightly aided by some of the localised lockdowns in Karnataka, Maharashtra and other states. That’s why demand has been lower on the diesel side. Petrol demand is good more or less. It is still 84 per cent of normal and the trend is in line with what happens every year in the second quarter of the year as soon as the monsoon sets in.
Last year the monsoon was slightly delayed and so if you see year on year, that will also have some impact and this time it is slightly early.