As states begin a phased exit from an over two-month lockdown, to contain the spread of covid-19, and economic activity resumes, refiners are beginning to ramp up production anticipating a pick up in fuel demand.
Demand for fuel had nearly disappeared as the lockdown had led to a fall in vehicular traffic, with movement of people restricted, factory shutdowns, and suspension of flights and trains.
As a result, major refiners–Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Nayara Energy and Reliance Industries–suffered revenue losses.
“We see increase in demand for not only petrol and diesel but also other products. The relaxation in lockdown will make other industries open up and their downstream activities will also increase.