New Delhi: India's crude oil import has traced its biggest drop since 2005 in May, data sourced from PPAC (Petroleum Planning and Analysis Cell) has shown. The figures fell 22.6 percent in the month in comparison to a year earlier to settle at 14.61 MT (Million Tonnes) in the wake of a decline in demand and refinery throughput because of the nationwide lockdown imposed to curb the spread of Coronavirus.
Oil products import at 3.57 MT, while oil exports rise by 5.9%
While import of oil products eased 0.8 percent to 3.57 MT year-on-year, oil exports rose by 5.9 percent to 5.75 MT for a straight ninth month in May as oil companies shipped more oil overseas in the backdrop of a slump in demand back home.
In April, India cut its crude oil imports figure to 16.55 million tonnes, registering a decline of 16 percent year-on-year, from 17.28 million tonnes reported earlier, the PPAC data showed.
Post-COVID recovery
As the government has eased restrictions in orange and green zones, fuel demand is expected to improve and refinery operations are also likely to be ramped up going forward. The latest data from PPAC has strengthened those expectations as India's fuel demand has jumped nearly 50 percent in May when compared to the previous month, signalling a revival in economic activity. Energy experts, however, expect a full-scale recovery in fuel consumption to be months away.
Diesel exports, which continued the trend of accounting for a major share of exports, increased by nearly 33 percent to 2.79 million tonnes.
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