India IOC offers spot gasoline as domestic demand falls

Indian state-controlled refiner IOC has offered a gasoline cargo for export, against lower gasoline sales in the country.

IOC offered 30,000t (253,500 bl) of gasoline for 23-24 March loading from Paradip. The pricing basis should be on the IOC formula, which takes the average of Argus and Platts' 92R gasoline spot assessments. The tender closes on 24 February and remains valid until the same day.

India's gasoline demand has been the bright spot of transportation fuel demand in the country, with demand exceeding pre-pandemic levels initially but declined with a resurgence of Covid-19 in parts of the country and higher fuel prices.

Gasoline demand rose by 6pc year-on-year to 711,000 b/d in January 2021 but fell for the first time in nearly six months in the first half of February, according to state-controlled refiners. Gasoline demand decreased by 2.4pc from a year earlier to 580,000 b/d during the first half of February, IOC said.

The fall in gasoline demand is quite unexpected and crude volumes have already been locked in with most refiners running at high rates, so some export cargoes could be expected if domestic demand remained low, according to traders.

IOC last issued a spot tender to buy 126,000-134,000t (1.06mn-1.13mn bl) of gasoline for delivery over December-January with firm gasoline sales then. Fellow state-controlled refiner BPCL has also offered a rare ultra-low sulphur diesel cargo for loading against weak domestic demand.

By Aldric Chew