Most Indian state refineries run at max capacity

Most Indian state-controlled refineries are operating at maximum capacity or higher, as transport fuel demand continues to increase with further gains expected in the coming months.

 MRPL was operating its 300,000 b/d refinery in Mangalore at more than 100pc and will continue to operate at these levels this month, while Bharat Petroleum (BPCL) was running its 310,000 b/d plant in Kochi and 240,000 b/d refinery in Mumbai at around 110pc, market participants told Argus.

BPCL also operates a 156,000 b/d refinery in Bina, which was running at more than maximum capacity last month but the current rate was unable to be verified.

Hindustan Petroleum’s 166,000 b/d Visakhapatnam (Vizag) refinery was operating at more than its maximum capacity, while its Mumbai refinery was operating at around 80pc of its enhanced capacity of 190,000 b/d. The Mumbai refinery will operate at maximum capacity in a couple of weeks, a market participant said.

Consumption of diesel and gasoline rose above pre-Covid-19 pandemic levels in October because of festival-induced surge in demand for goods and use of personal transport. Goods are usually transported through trucks and heavy motor vehicles, which predominantly use diesel as fuel.

Jet fuel use was holding below pre-pandemic 2019 levels, but consumption has been increasing against a month earlier as domestic air travel demand increased. The government has now permitted airlines to operate at 100pc of their pre-pandemic capacity.

Source: https://tankterminals.com/