Indian Oil Corp (IOC) said it was operating its refineries short of full capacity as diesel sales had not yet hit pre-pandemic levels.
The company, which said it was operating at 90% capacity, added it expected to increase refining to full capacity shortly as demand for fuel steadily increased.
Indian state fuel retailers’ petroleum sales exceeded pre-pandemic levels in the first fortnight of July, as motorists returned to the roads as several states eased their COVID-19-related restrictions.
Diesel sales are still at about 85%-90% of pre-COVID-19 levels and are expected recover in a few months time, chairman SM Vaidya revealed.
He added that its refinery runs were also expected to be running at full capacity by then.
Higher fuel prices also hit consumption, with India’s tax-heavy retail prices of petroleum hitting record highs as global crude oil prices increased steadily. The state-owned company had reported a net profit of 59.41 billion rupees (€671 million) in the quarter ending June 30.
Indian Oil also said it has extended its joint venture partnership with Malaysian state oil firm Petronas for the retail sale of diesel and petrol.
IOC, along with its unit Chennai Petroleum, controls about a third of India’s five million barrels-a-day of refining capacity.
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