IOC raises refinery output as fuel demand rises

The country’s largest oil firm said it’s boosted refinery run rates to just about 83 percent of the capacity. After the demand for fuel almost doubled with the easing of the coronavirus-led lockdown. The state-run refinery had cut its overall run rate by 25-30 percent in March to regulate operations thanks to the slump in demand. It began raising throughput in May after some lockdown restrictions were eased.

“The petroleum throughput of IOC refineries crossed 80 percent as on date. With the consumption of all petroleum products put together. Almost doubling in May 2020 as compared to April 2020 levels,” the corporate said during a statement.

From about 55 percent of rated capacity at the start of May to about 78 percent by the month-end, and 83 percent as on date, it said.

Capacity utilization of the refineries had dropped to almost 39 percent. Within the beginning of April.

Guwahati refinery coming online

“With Guwahati refinery coming online after maintenance shutdown, IOC refineries are geared to work at about 90 percent of their capacities this month. As products demand within the market increases, alongside strategic product exports,” the statement said.

India on Annunciation instituted the world’s largest lockdown. To combat the novel coronavirus, halting most economic activity, and throwing traffic off-road.

Economic activities, particularly manufacturing, have picked up within the last half of May thanks to further easing of lockdown restrictions.

“While the consumption of all petroleum products put together almost doubled in May 2020 compared to April 2020 levels. The growth of petrol was higher at about 70 percent and diesel at 59 percent,” IOC said.

Compared to May 2019, or the first months of the present year before the lockdown. The expansion percentage is yet to catch up by 24 percent to 26 percent for all products, it said.

In the case of LPG, with IOC rolling out about 25 lakh cylinder refills each day, the typical backlog is a smaller amount than each day.

it said, adding that employment has also restarted on other projects like grassroots LPG bottling plants, upcountry terminals/depots, and extra facilities/tankage at existing bulk storage locations.

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