<article><p class="lead">Indian refinery throughput dropped last month as localised Covid-19 lockdowns eroded fuel demand and maintenance was carried out at two key refineries. </p><p>Crude runs declined to 3.8mn b/d in August, from 4.18mn b/d in July and 5.2mn b/d in August 2019, according to preliminary oil ministry data. High-sulphur grades made up 72.5pc of the crude intake last month, compared with 75.1pc a year earlier.</p><p>India's state-controlled refineries, including those run as joint ventures, processed 2.4mn b/d of crude last month, compared with 2.8mn b/d in July and 3.35mn b/d in August 2019. Runs were constrained by a shutdown at IOC's 300,000 b/d Paradip refinery on the east coast. IOC <a href="https://direct.argusmedia.com/newsandanalysis/article/2143083">said</a> it plans to boost its utilisation rate if the recovery in fuel demand seen this month continues.</p><p>Meanwhile, India's private-sector refineries reduced crude throughput to around 1.4mn b/d last month from 1.84mn b/d a year earlier, driven by a shutdown at Reliance Industries' (RIL) 704,000 b/d export-oriented facility at the 1.36mn b/d Jamnagar refinery complex on the west coast. RIL processed a total of 1.04mn b/d at Jamnagar last month, up from 1mn b/d in July but down from 1.42mn b/d a year earlier. Nayara Energy, which is owned by Russia's state-controlled Rosneft, processed around 355,000 b/d at the 400,000 b/d Vadinar refinery in western India last month, compared with 378,000 b/d in July and 426,000 b/d a year earlier.</p><p>India's six-month long nationwide lockdown is due to end on 30 September but a sharp rise in daily coronavirus cases has led to several localised lockdowns. India has recorded almost 5.5mn Covid-19 cases, the second-highest behind the US.</p><p>India imported 3.6mn b/d of crude last month, 700,000 b/d higher than in <a href="https://direct.argusmedia.com/newsandanalysis/article/2133998">July</a> but 23pc lower than in August last year, according to the preliminary oil ministry data. </p><p class="bylines">By S Dinakar</p></article>
