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Gasoline sales by state fuel retailers in India surpassed pre-pandemic levels in the first two weeks of July as motorists hit the streets after states eased COVID-19 lockdowns.
Even when a second wave of COVID-19 infections hit the country in April and May, this year’s lockdown restrictions were not as strict compared to last year as most states allowed some vehicle movement.
Still, Indian refineries had reduced crude oil processing during the quarter and limited oil purchases amid higher fuel inventories.
Diesel sales are still around 85-90% of pre-COVID-19 levels and are expected to recover by November Diwali Festival, chairman SM Vaidya told a press conference, adding that refinery runs are also expected to be at Until then, 100% capacity.
Higher fuel prices also hurt consumption as India’s tax-heavy retail gasoline and gas oil prices hit record highs due to a surge in global crude oil prices. International Brent prices rose about 18% in the June quarter.
The state-owned company had net income of $ 59.41 billion in squeezed margins for the quarter ended June 30.
Operating sales increased 74.3% to Rs 1.55 trillion for the quarter.
Indian Oil also said it has extended its joint venture partnership with Malaysia’s Petronas for retail sales of diesel and gasoline, but no further details were revealed.
IOC, together with its Chennai Petroleum unit, controls about a third of India’s refining capacity of five million barrels a day.
($ 1 = 74.3625 Indian Rupees)
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