Growth in the country’s diesel demand is likely to return to pre-COVID-19 levels by the end of 2021 or by the end of 2022, Dependent Deshpande, vice president of oil refiner Naira Energy, said at the Platus APEC 2020 2020 conference.
Mr. Deshpande said that improvement in economic activity, good monsoon rains and Indian festive season will meet the demand for diesel.
India’s diesel demand has already come down since April, when the country was completely shut down to stop the spread of KVID-19.
Deshpande said refinery runs would be shorter and could be cut further in the short term.
“It remains to be seen who will score further runs.”
Mr. Deshpande said that an emerging trend in the coming years would be for complex refiners to enter the petrochemical or retail sector.
This week, Indian Oil Corp (IOC) said it would expand its petrochemicals capacity and integrate it with its textile business to help offset the impact of lower refining margins.