Coronavirus Effect: Crude Processing Sees Biggest Drop In Nearly Two Decades


India’s crude oil processing in April slumped by 28.8 percent from a year earlier, its biggest drop since at least 2003, as a nationwide lockdown weighed on fuel demand and forced refiners to cut production.

Refiners processed about 14.75 million tonnes or 3.60 million barrels per day (bpd) of oil last month, government data showed.

The nationwide extended lockdown and travel curbs since March 25 has cut India’s fuel demand by 45.8 percent in April.

Falling demand led Indian refiners and gas importers to declare force majeure on imports. Refiners, struggling to store oil and products, had to sell some oil to the federal government which used it to fill strategic storage.

Indian refiners operated at about 72 percent of their overall capacity of about 5 million bpd, the data showed.
Indian Oil Corp (IOC), operated its plant at about 53 percent capacity, while use at the refineries owned by its subsidiary Chennai Petroleum plunged to about 33 percent of capacity, the data showed.

Reliance Industries Ltd (RIL), operator of the world’s biggest refining complex, operated its export-focussed 700,000 bpd Jamnagar refinery at about 87 percent capacity.

Nayara Energy, part owned by Russia’s Rosneft, curtailed runs at its 400,000 bpd Vadinar refinery to 85 percent of capacity.

India, which imports over 80 percent of its oil needs, produced 6.4 percent less oil in April than a year earlier at around 2.55 million tonnes or 620,000 bpd, data showed.

Natural gas output fell 18.6 percent to 2.16 billion cubic metres, as per the government data.