Indian refiners have saved about 32 million tonnes of oil in tanks, pipelines and on ships, making the most of low oil costs to assist the nation reduce its import invoice, oil minister Dharmendra Pradhan mentioned on Monday. India, the world’s third largest oil importer, buys over 80 p.c of its oil wants from abroad markets. The nation has annual refining capability of about 250 million tonnes.
Nonetheless, journey restrictions and curbs on industrial exercise to stem the unfold of COVID-19 have hit gas consumption and crude processing within the nation.
India has additionally diverted among the state refiners’ extra oil to fill the 5.03 million tonne strategic petroleum reserves (SPRs), serving to firms that are struggling to search out storage keep away from fees for delays in offloading recent cargo deliveries.
The businesses have parked 7 million tonnes of oil in floating storage and 25 million tonnes in pipelines and storage tanks as oil costs plunged, Pradhan mentioned on social media.
“India can meet round 20 p.c of its home demand by storing low-priced priced crude oil,” he mentioned, including that gas demand would get better as financial exercise picks up.
“Some exercise picked up in rural India from April 17 and from right this moment, exercise shall be stepped up in remainder of the nation, which is able to push up demand,” he mentioned.
The nationwide lockdown, among the many world’s strictest, is being relaxed in some areas with fewer infections, though it would final till Could 17, the federal government mentioned final week. The measure was adopted on March 25 and prolonged twice.
Indian demand for diesel and petrol began to get better within the second half of April.
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)