Indian Oil Corp. Ltd. has slashed crude oil throughputs at most of its refineries by 25-30% amid sharply reduced demand for finished petroleum products in the wake of the coronavirus (COVID-19) outbreak across India.
Despite currently reduced rates, increased output of petroleum products from the refineries a week earlier has helped the company build up its stocks in bulk-storage locations to help meet supply needs once India’s countrywide lockdown is lifted and demand resumes, IOC said in a release.
The operator said it will continue to monitor changing market scenarios and initiate actions to adapt its business accordingly.
While the COVID-19 outbreak has reduced India’s demand for products such as gasoline, diesel, fuel oil, bitumen, and jet fuel, domestic demand for LPG cooking gas has increased. To meet the country’s rising LPG demand, IOC said it is taking steps to increase LPG production from its major refineries by optimizing operations, including works to improve LPG yields in LPG-producing units like fluid catalytic crackers and Indmax units.
Despite the many constraints to operations resulting from the current COVID-19 crisis, IOC reassured customers it remains committed to ensuring fuel availability to customers and emergency services while maintaining all necessary precautionary measures.
The operator disclosed no details regarding the specific refineries operating at reduced crude rates nor their current rates of throughputs.
With an overall group refining capacity of more than 80.7 million tonnes/year—the largest share among domestic refining companies—IOC controls 11 of India’s 23 refineries directly and via subsidiaries to account for a 32.36% share of total national refining capacity, according to the company’s website.
