Surging fuel demand drives up India’s crude oil processing in December
India’s crude oil processing last month registered its first year-on-year gain since February 2020, driven by a surge in demand for fuels as economic activity continued to pick up from a coronavirus-induced slump.
Crude oil throughput in December rose 0.9% year on year to 21.02 million tonnes (4.97 million barrels per day), provisional government data showed on Thursday. At the heart of the pick-up in crude oil processing, fuel consumption rose 4.1% to 18.6 million tonnes in December, its highest since January 2020.
With gasoline and diesel demand in India increasing year on year, refiners have to boost runs to meet growing demand, said Refinitiv analyst Ehsan Ul Haq, adding that COVID-19 vaccinations should encourage people to travel more and support high refinery runs.
Asia’s third-largest economy began its vaccination program last week, aiming to inoculate 300 million people considered at highest risk over the next six to eight months.
India’s crude oil imports in December soared to their highest in nearly three years, according to trade sources, highlighting the need for increased supplies for refiners seeking to meet the surge in fuel consumption.
