Indian refiners‘ crude oil processing stayed near record peaks in March, provisional government data showed on Friday, catering to solid seasonal demand in the world’s third biggest oil consumer.
Refinery throughput gained 3% to 5.44 million barrels per day (23 million tonnes) year-on-year for March. Throughput stood at 5.46 million bpd (20.85 million tonnes) in February.
Crude oil processed in tonnes, was the highest since Reuters records going back to 2009. Crude processed in million bpd terms, taking into account the fewer days in February, was also the highest since Reuters records going back to 2009.
In March, India’s fuel consumption hit a record high.
“In March, we generally see seasonal high demand. Fuel demand is rising with heightened industrial activity and also as it is harvesting season,” said Prashant Vasisht, vice president and co-head, corporate ratings at ICRA.
“Demand might slow when monsoons hit India, but overall we still project increased fuel demand for the year as the Indian economy is expected to record good growth.”
Natural gas output was up 2.4% to 2.96 billion cubic metres year on year, while crude oil production fell 2.9% to 2.45 million tonnes, the data showed.
Preliminary sales data showed Indian state refiners posted an 8.4% rise in sales of gasoil to 3.45 million tonnes in the first half of April compared with the same period last month, indicating higher demand from the agriculture sector and a recovery in industrial activity.
India has been stocking up on discounted Russian crude oil. Western nations have imposed a $60 a barrel price cap for anyone buying Russian oil as part of sanctions against Moscow. However, India and China have paid prices above the cap, according to traders and Reuters calculations.
