India crude throughput up in April despite lower demand

India's crude throughputs surged on the year in April as most of the country's refineries operated at near capacity, despite Covid-19 lockdowns and curfews weighing on fuel demand.

Crude throughputs hit 4.86mn b/d last month, up by 35pc from a low base in April 2020, oil ministry data showed. Crude production eased by 2pc to about 609,000 b/d.

Indian refineries slashed run rates in April last year after the government imposed a nationwide Covid-19 lockdown. Last month's throughput was down by 4pc compared with pre-pandemic levels in April 2019, while crude production fell by 8pc over the period.

State-controlled IOC, which operates 1.34mn b/d of capacity, maintained runs at 99pc last month, while private-sector Reliance Industries kept runs steady at its 1.36mn b/d Jamnagar complex in April. India's refining runs have since fallen as the country's Covid-19 outbreak has worsened.

Indian refineries utilised 96.8pc of their combined prorated installed capacity in April, with IOC and BPCL running at 104pc and 115pc respectively. Refineries can operate higher than their usual capacity by technical alterations

Crude throughput was also supported by ample availability of storage capacity for products, even as consumption of fuel fell on the month in April as lockdowns and restrictions weighed on transportation demand.

The total number of Covid-19 cases in India rose to 26mn as of today, according to data from Johns Hopkins University.

The surge has prompted many states to impose new lockdowns and curfews or extend existing measures, which are likely to further weigh on fuel consumption.

India's diesel, gasoline and jet fuel consumption slumped in the first half of May compared with the first half of April, according to data from state-controlled refiners that account for around 90pc of the country's fuel sales.

Refiners are now cutting production in response to falling domestic demand.

Driving activity across India was 47pc below a 13 January 2020 baseline as of 19 May, mobility data from US technology firm Apple show. Activity in April was 4pc below the same base line.

By Sathya Narayanan