COVID-19 impacts demand, but production of petroleum products high in April

Indian refineries produced more petroleum products in April this year than what was achieved in the same period last year even as demand conditions remain tepid with slower sales of auto fuels in the country amid wave of fresh COVID-19 wave and lockdowns in various parts of the country.

According to petroleum ministry data, production of petroleum products by Oil's Refineries during April, 2021 was 20525.69 TMT (1,000 million tonne) which is 0.97 percent higher than the target for the month and 31.04 percent higher than the production during April, 2020.

Production of petroleum products by Fractionators during April, 2021 was 365.89 TMT which is 5.08 percent higher than the target for the month and 23.58 per cent higher than the production during April, 2020.

While product performance in April remains unaffected, crude oil production continued to remain flat with dwindling old reserves and lack of new prospective producing oil finds. Accordingly, crude oil during April, 2021 stood at 2493.26 TMT which though is 1.16 percent higher than target for the month but is 2.07 percent lower than the production during April, 2020.

The story on natural gas production in the country is slightly better with development of new funds both by public and private sector entities. Gas production during April, 2021 stood at 2651.49 MMSCM which is 22.68 percent higher than the production during April, 2020 but lower by 1.02 percent than the monthly target.

The main growth performer for natural gas in the country has been private are for entities and other joint venture companies. Natural gas production by Pvt/JVs companies in the PSC & CBM regime during April, 2021 was 710.86 MMSCM which is 12.10 percent higher than the target and 204.33 percent higher than the production during April, 2020.

Crude Oil processed during April, 2021 was 19884.70 TMT which is 1.82 percent higher than the target for the month and 34.86 per cent higher vis-a-vis April, 2020. Capacity utilisation during the April, 2021 was 96.82 percent.