Indian refineries are reducing crude processing and closing units for maintenance as local fuel demand falls and global refining margins are weak, company officials said.
Fuel demand in Asia's third-largest economy had increased since May from record lows in April, when a national blockade was imposed to stop the spread of the new coronavirus.
However, in July, growth in local demand slowed due to high fuel prices, the renewed blockade in some parts of the country, and monsoon rains hitting transportation, industrial, and construction activity.
Bharat Petroleum Corp is operating its three refineries with a capacity of about 70% compared to about 90% in early June, said its head of refineries R. Ramachandran.
Authorities said August crude processing in India will decrease further as the country's main refiner, Indian Oil Corp, Reliance Industries, operator of the world's largest refining complex, and BPCL, among others, shut down units for maintenance during this period of low demand.
Refineries typically don't do maintenance during the monsoon, but Ramachandran said the COVID crisis has changed that.
No comments:
Post a Comment