IOC aims to operate refineries at 90% capacity in June as demand recovers

Indian Oil Corp, the country's top refiner, aims to operate its refineries at an average 90% capacity in June as fuel demand recovers with the easing of a coronavirus lockdown, the company said on Wednesday.

IOC, which along with subsidiary Chennai Petroleum Corp, controls about a third of India's 5 million barrels per day (bpd) refining capacity, is operating its plant at about 83% capacity, a sharp increase from 39% at the beginning of April.

Refiners in Asia are cranking up runs as the lifting of lockdown restrictions is pushing up fuel demand. India's fuel consumption in May increased significantly from April.

IOC said in a statement it was operating its naphtha cracker at Panipat refinery at full capacity as several downstream petrochemical industries have resumed operations.

The company said it was on track to spend the approved capital expenditure of 261.43 billion rupees ($3.46 billion) for 2020-21.