New Delhi: (Indian Oil Corporation news) State-run Indian Oil Corporation (IOC) is operating its refineries at 84 percent of their capacity as on May 17, IOC Chairman and Managing Director (CMD) SM Vaidya said on Wednesday. This is down from the 96.1 percent refinery capacity utilisation rate recorded in April of FY22. The throughput has been scaled down in the wake of the demand destruction caused by the second wave of the COVID-19 pandemic, said Vaidya.
However, he added that the demand destruction because of the second wave of the COVID-19 pandemic is not to the extent it as it was seen last year during the first wave. "It is, of course, very much there but not to that extent. With the number of COVID-19 infections going down, we should be at this level for sometime." He also said that it was "very difficult to say" when fuel demand would go back to normal levels.
Addressing the media, Vaidya said that the average refinery utilisation rate for FY21 was 89.5 percent. While Q1 of FY21 saw Indian Oil's refinery throughput plunging to 69 percent in the wake of the nationwide lockdown imposed to curb the spread of COVID-19, the figure improved to 73 percent in Q2 of FY21 and settled at 94 percent in Q3 and Q4 of the previous financial year. However, with a fresh surge in COVID-19 infections and movement restrictions imposed by state governments, fuel demand has again plunged by about 10 percent in comparison to the March quarter of FY21, said Vaidya.
On being asked about Indian Oil's plans to diversify its sources of crude oil, in line with the direction issued by the Centre, the IOC CMD said that the oil PSU has a firm plan in place to diversify its crude oil basket. "We have a firm plan in place for diversifying the crude basket. So that we are able to get crude from all geographies of the world," said Vaidya without divulging further details.
Commenting on the asset monetisation plan, the Indian Oil CMD said that under the first phase, Indian Oil will be monetising Hydrogen units across its refineries. "In line with the target set by the government, Indian Oil will be monetising all the Hydrogen units across its refineries in the first phase. To begin with, two Hydrogen units at IOC's Gujarat Refinery, each of capacity 70,000 tonnes, will be put on sale," said Vaidya.
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