Indian Oil Corp Ltd’s (IOC) refineries are operating at about 95 per cent of their capacity, down from 100 per cent at the same time last month, two sources familiar with the matter told Reuters.
Coronavirus cases have surged in India, leading to curbs on movement across the country, a move analysts say could hit fuel demand in the world’s third largest oil importer and consumer.
An official at IOC, India’s biggest oil refiner, said the cuts in runs at its refineries were “marginal” but analysts and industry officials say there could deeper reductions in output from the country’s refineries in coming days.
“If cases continue to rise and curbs continue or intensify for a longer period, we may see cuts in refinery runs and lower demand after a month,” an industry source said.
Consultancy FGE said it estimates gasoline demand will drop by 100,000 barrels per day (bpd) in April and by more than 170,000 bpd in May if further restrictions are imposed. India’s total gasoline sales came to nearly 747,000 bpd in March.
Diesel demand is expected to contract by 220,000 bpd in April and by another 400,000 bpd in May, according to FGE.