Amid COVID-19, the state-run Indian Oil Corporation (IndianOil) is determined to achieve its CAPEX target of Rs 26, 233 crore and has no plans to reduce this spending, confirmed IndianOil chief. The work of 2,800 projects have commenced post the lockdown was lifted.
During the press briefing, IOC, Chairman, Shrikant Madhav Vaidya told the Free Press Journal, “We have a plan to achieve the CAPEX (Rs 26, 233 crore) for FY 21.” He added there is no change in plan there even though the demand and supply scenario during the COVID-19 times is different.
“IndianOil is on track to achieve its capital expenditure target of Rs 26,233 crore in the current fiscal. With the easing of lockdown from mid-April 2020, work has commenced again on 2,800 projects at a combined investment of Rs. 2.05 lakh crore.”
He stressed that India’s energy demand is poised for robust growth in the long-term. “And that disruptions like COVID-19 will only change the form in which the energy demand manifests itself.”
The oil marketing company is optimistic that retail oil demand will rise and it will most probably reach pre-COVID-19 levels by the next quarter. However, the Chairman failed to give a timeline for the pick up in demand for aviation fuel as the aviation industry is still under stress. Jet fuel sales is up 27.8 per cent month-on-month but down 56.4 per cent year-on-year.
Meanwhile, LPG is up 10.5 per cent year-on-year and 14 per cent month-on-month. Vaidya also added that IndianOil delivered 25 lakh LPG cylinders every day to the doorsteps of customers, despite lockdown restrictions. He went to add that refill supplies peaked at 33 lakh daily in April 2020.
For the first fortnight of September 2020, IndianOil’s diesel sales rose 22 per cent month-on-month but was down 9 per cent year-on-year whereas petrol sales was up 9 per cent month-on-month. He added, “The robust month-on-month recovery in diesel and petrol is primarily due to easing of lockdown restrictions, while petrol demand is moving upwards due to increasing preference for personal mobility.”