Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Low diesel demand hits BPCL's crude runs, ups petrol imports

Date: 29-09-2020
Subject: Low diesel demand hits BPCL's crude runs, ups petrol imports
NEW DELHI/ BANGALORE: Bharat Petroleum Corp will continue to import gasoline for the next few months as its crude processing is hit due to lower demand for diesel that accounts for 40%-45% of its product slate, its head of marketing A. K. Singh said.

BPCL NSE 0.36 % is operating refineries at an average of 80% capacity, Singh told a press conference after a shareholders meeting. By design BPCL refineries make 2.5 tonnes of diesel for every 1 tonne of gasoline produced, he said.

"If diesel demand picks up we will not be required to import gasoline as then we will be processing more crude ... diesel is restraining crude throughput ... MS (motor spirit) is almost at pre-pandemic level. Diesel is lagging," he said.

Asia's gasoline refining margin surged to a 6-1/2 month high on Monday as supplies tightened, industry sources said. India's recent spot demand also provided support to the Asian gasoline market.

India's gasoline demand in September recovered to last year's level as passenger cars sales surged last month and motorists are relying on personal vehicles for commuting amid rising cases of coronavirus.

Slowing industrial activity has delayed a recovery in diesel consumption, largely used by commercial vehicles. Diesel demand this month is 8%-9% lower than year-ago levels, he said.

Singh hoped India's diesel sales would recover next month during the festival season.

BPCL will completely stop importing gasoline from April next year when it would start new units at its Kochi refinery to upgrade naphtha into gasoline, he added.

He hoped BPCL will go back to its pre-COVID product slate in next two-three months, notwithstanding lower demand of jet fuel which is just 4%-5% of its overall output, he said.

BPCL, which the federal government has targeted to privatise in this fiscal year to March, is in talks to buy Oman Oil Co's stake in its joint-venture Bharat Oman Refinery Ltd , which operates a refinery in central India, its head of finance said.

"There has been an interest expressed by Oman side to divest its stake in BORL. We have just started a dialogue with them ... Both sides have interest in that, said N. Vijayagopal.


Infodrive India Pvt Ltd

Delhi :
  F-19, Pocket F, Okhla Phase-I
      Okhla Industrial Area

      New Delhi- 110020
   011 - 40703001

Kolkata :
  5th Floor Stesalit Towers,
      E-2-3, EP & GP Block,

      Sector-V, Salt Lake City,
      Kolkata-700 091
   033 - 71177191

INFODRIVE INDIA Copyright © 1996-2020 InfodriveIndia. All Rights Reserved.
Please read our Terms of Use and Privacy Policy before you use.

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help