Most Indian state-refineries operate at max in March

Most Indian state-refineries operate at max in March

Mumbai, 25 March (Argus) — Most Indian state-controlled refineries have operated at maximum capacity this month on continued anticipation of strong demand in the coming months and on robust product cracks, market participants close to the refiners told Argus.

The country's biggest state-run refiner in terms of capacity, IOC, and fellow refiner MRPL's 300,000 b/d Mangalore refinery were operating at 100pc or higher than their nameplate capacities. The two refiners have deferred some upcoming maintenance shutdowns because of current strong refining margins.

BPCL's 310,000 b/d Kochi, 240,000 b/d Mumbai and 156,000 b/d Bina refineries were also operating at maximum or higher than their nameplate capacities. But there was a brief hiatus earlier in the month at the Mumbai refinery after a power grid failure resulted in a DHDS unit shutdown, which market participants said has been resolved.

The power blip also affected HPCL's 190,000 b/d Mumbai plant, which is still regulating crude intake but is expected to operate normally by the end of the month. The state-refiner's 166,000 b/d Visakhapatnam (Vizag) refinery was operating normally at maximum capacity.

India's consumption of transport fuel increased in February as most businesses resumed operations after the government eased restrictions on mobility and travel.

Average driving activity across India