India’s top oil refineries are cutting back on imports and imports as the growing COVID-19 epidemic has reduced fuel consumption, which has led to higher crop yields, company officials told Reuters on Tuesday.
Indian Oil Corp, the country’s largest refiner, has reduced the run to an average of between 85 percent and 88 percent energy efficiency, a company official said, adding that the run could be further reduced as some plants face problems with oil storage refined.
IOC filters were operating at about 95 percent of their capacity by the end of April.
Also read : Gold demand raised due to Akshaya Tritiya : Navneet Damani of Motilal Oswal
“We do not expect our illegal analysis to be reduced by last year’s level by 65-70 percent as the motor vehicle movement in government is still in place… (economy) is in operation,” he said.
Many provinces across India are on the verge of closure as the coronavirus problem shows little signs of downtime on Tuesday, with an average of seven days of high-profile new cases, although the Indian government, the world’s third-largest importer and buyer, has never implemented a complete lock.
The state-owned Barat Petroleum Corp reduced its crude imports by one million barrels in May and will reduce purchases by two million barrels in June, a company official said.
MK Surana, chairman of Hindustan Petroleum Corp, expects Indian oil prices in May to drop by 5 percent since April as the impact on driving and manufacturing industries is not as great as last year.
“In this case it is not a complete lock as a last resort,” he said.
“Sales in April were 90% in March and we expect May to be 5 percent lower than in April.”
Also read : Gold came after a short consolidation, rising 2.19% this week; bullish support momentum: Experts
