Indian refiners’ crude throughput declined 4.4 per cent month-on-month in August to 5.27 million barrels per day (22.29 million metric tons), according to provisional government data released on Thursday.
Refinery throughput in July was at 5.51 million barrels per day (23.31 million metric tons). On a year-on-year basis, refinery throughput rose 3 per cent in August.
India’s fuel consumption in August hit an 11-month low, slipping 3.8 per cent month-on-month to 18.73 million metric tons, oil ministry data showed. India is the world’s third-biggest oil importer and consumer.
“Refinery throughput declined in August compared to July, primarily due to seasonal monsoon-related disruptions, scheduled maintenance shutdowns, and one of the refineries operating at reduced capacity,” Prashant Vasisht, vice president and co-head of corporate ratings at ICRA, said.
Meanwhile, Indian oil refiners are increasing gasoline and diesel exports to their highest levels in several years, driven by expanded crude processing capacity and increased domestic ethanol blending that has freed up fuel supplies for overseas markets, traders and analysts said.
This year, India’s crude processing is expected to increase by 130,000 to 160,000 barrels per day to about 5.51 million bpd, with gasoline exports hitting a record high of around 400,000 bpd, according to consultancy Wood Mackenzie.
In July, European Union countries approved an 18th sanctions package against Russia over its war in Ukraine, with a lower price cap on Russian oil. The rise in Indian exports is expected to help meet Europe’s winter heating oil demand and support Indian refining margins, after refiners turned to discounted Russian crude.
