The sales of MS, HSD and ATF in May 2020 was lower by 38.9% as compared to May 2019 says Indian Oil Corporation Limited. 

 

The demand for petroleum products dropped by 46% in April 2020. The sale of MS, HSD and ATF in April 2020 were down by 61%, 56.7% and 91.5% respectively as compared to April 2019. 

 

The petroleum product sales had witnessed a demand growth of 1.9% in FY2019-20 till February 2020. However, the same declined by 18% in March 2020 due to lockdown, dragging down the growth for the full year to 0.22%. 

 

There was no closure of any of the refineries of the company due to drop in the demand of petroleum products, the operations of refineries were curtailed to the level of 39% during the month of April 2020. The improved demand for petroleum products in May 2020 resulted in higher capacity utilization of refineries to the extent of 75-80% and is being further ramped up. 

 

It is expected that with the opening up of lockdown and revival of the economy on the strength of the economic package, the sales would soon get revived. Further, the recent increase in international prices of crude oil and petroleum products as well as rupee appreciation has to some extent already offset the inventory losses and forex losses. 

 

There was a sharp increase in demand for LPG cooking gas since the lockdown was announced. The company increased the production of LPG by optimizing the operations in refineries and also tied up for additional imports to ensure uninterrupted availability of bulk LPG for its bottling plants.