In A Sign Of Economic Revival, IOC's Refineries Are Operating At 100% Capacity

As the Indian economy prepares to bounce back, India's largest refiner Indian Oil has gradually raised the throughput of its refineries to the maximum capacity.

(Representative Image/ Getty)

New Delhi: In what could signal the revival of the economy, the Indian refiners have almost doubled their refineries' capacity to meet the growing fuel demand, which has nearly reached the pre-COVID-19 levels. The crude oil throughput of Indian Oil refineries rose to 100% in November 2020, as all petroleum products' consumption has almost reached pre-Covid-19 levels. In October 2020, this figure was 88%, and last year for the same period, it was 99%. As the Indian economy prepares to bounce back, India's largest refiner Indian Oil has gradually raised the throughput of its refineries to the maximum capacity in six months from about 55% of rated capacity at the beginning of May 2020. During November 2020, Motor Spirit (Petrol) sale was 1.06 MMT, which is higher by 4% compared to the same period last year. In LPG, the demand has gone up by approximately 1.4% to 1.09 MMT compared to the corresponding period last year. On the other hand, although diesel has registered a growth of 2% compared on a month on month basis, it is still 9% less when compared on a year-on-year basis. ATF has also registered a growth of 4% compared to October 2020 but is still 45% less when compared on a year-on-year basis. Concomitantly with the growing consumption of white oils, petrol, diesel, and ATF, the demand for black oils and specialty products like fuel oil, bitumen, pet coke, and sulphur, is also improving, enabling an increase in throughput of refineries. Commenting on this increased demand for petroleum products, Indian Oil Chairman SM Vaidya said, "The Indian economy continues to witness the green shoots of revival. As we get closer to the Covid-19 vaccine roll-out, the fundamentals of the economy being strong, we see a rapid V-shaped recovery in the overall consumption of petroleum products. All our project sites, too, are witnessing a revival in terms of construction activities." "In view of this, IndianOil, the largest oil refiner of the country, is all geared up to meet the rising market demand in accordance with objectives of the Atmanirbhar Bharat Mission to place the economy on the path of growth resolutely, he added.