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Fuel Product Consumption Rises 1.8% In October, Records Seven-Month High

Fuel Product Consumption Rises 1.8% In October, Records Seven-Month High

Fuel product consumption in October was at a seven-month high

The country's domestic consumption of petroleum products increased by 1.8 per cent year on year (YoY) to 4.2 million barrels per day in October 2020, while the production and exports declined 17.0 per cent YoY to 4.5mb/d and 35.7 per cent YoY to 0.9mb/d, respectively, according to a recent research report released by Indian Ratings and Research (Ind-Ra). The data recorded in October shows that the fuel product consumption in October was at a seven-month high after the government eased COVID-19 restrictions in an attempt to revive the economy. Recently, according to the Q2 GDP data, the economy contracted by 7.5 per cent, following a major slump of 23.9 per cent in the previous quarter.

On a cumulative basis, the production, domestic consumption as well as exports declined by 16.4 per cent, 15.7 per cent, and 11.0 per cent YoY, respectively, during the period of April-October 2020. In October, the country's refining throughput declined 16.1 per cent YoY to 4.35mb/d. It marginally increased 0.5 per cent month on month (mom). The refining throughput was down by 19.7 per cent YoY to 4.06mb/d during the April-October period.

The domestic crude production fell by 6.2 per cent YoY to 0.61mb/d in October. The production volumes of Oil and Natural Gas Corporation Limited, Oil India Limited, and the fields under production-sharing contracts decreased 0.3 per cent 5.8 per cent and 19.8 per cent, respectively. On a cumulative basis, a decline of 5.7 per cent YoY in the domestic crude production was registered during April-October. 

According to the report, the country's crude import dependency almost remained stable on a year-on-year basis at 83.4 per cent during October.

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Overall, the increase in domestic consumption was largely led by a 15.4 per cent and 6.4 per cent increase in consumption by fertiliser and power segment, respectively.  The LNG import volumes increased by 22.1 per cent and 6.8 per cent month-on-month mom in October. On a cumulative basis, LNG imports recorded nominal growth of 0.9 per cent year-on-year during the April-October period this year.