Indian Oil Operates At Full Capacity On Rebound Of Fuel Demand

India’s high refiner Indian Oil Corp has been working at 100 per cent capability since early November as native gasoline demand has recovered, its chairman S.M. Vaidya stated. IOC has been step by step elevating crude runs at its crops, which plunged to about 39 per cent initially of April when a nationwide coronavirus lockdown hit gasoline demand. Together with its subsidiary Chennai Petroleum Corp, IOC controls a few third of the 5 million barrels per day (bpd) refining capability in India, the place gasoline demand in October rose by 2.5 per cent, its first year-on-year rise in eight months.

IOC is working at full capability regardless of decrease international refining margins as its “mandate” is to satisfy the native gasoline demand, Vaidya instructed an oil business convention on Thursday.”Refining margins are very poor, in truth they’re simply not sustainable however we’re additionally investing closely in petrochemicals as a method to de-risk the enterprise of low margins,” Vaidya stated in the course of the ADIPEC occasion.

Like different Indian refiners, IOC usually operates its crops at greater than put in capability. Vaidya stated the scenario will return to regular in subsequent quarter.