Indian state refineries maintain maximum runs in May

Indian state refineries maintain maximum runs in May

Mumbai, 2 June (Argus) — Indian state-controlled refineries operated at maximum nameplate capacity in May because of firmer refinery margins and increased demand for transport fuels during the summer period, which typically lasts until June.

IOC, India's largest refiner by capacity, ran at about maximum capacity last month, according to market participants close to the refiners. Hindustan Petroleum's 190,000 b/d Mumbai and 166,000 b/d Visakhapatnam refineries operated at 100pc, while MRPL's 300,000 b/d Mangalore refinery also operated at maximum capacity.

State-controlled Bharat Petroleum's 310,000 b/d Kochi, 240,000 b/d Mumbai and 156,000 b/d Bina refineries also operated at maximum capacity. But Mumbai will have a partial maintenance shutdown in the second week of this month, a market participant said.

India's transport fuel demand in May rose from the previous month in May and way above a low base during the Covid-19 affected May 2021, according to preliminary data from the state-controlled refiners that control around 90pc of the domestic fuel market. Diesel demand was up by 1.8pc and gasoline up by 8.2pc from the previous month and by 39pc and 56pc respectively from a year earlier.

Jet fuel demand in May more than doubled from a year to around 137,000 b/d, which was 7.5pc higher