Indian refiners experienced a slight increase in crude processing in May, with throughput rising by 0.4% compared to the same month last year, reaching 5.47 million barrels per day, or 23.11 million metric tons, according to provisional government data released on Thursday. This marked an increase from April’s figures, which were recorded at 5.25 million barrels per day, equivalent to 21.49 million metric tons.
Fuel demand in India hit its highest level in over a year during May, coinciding with a record increase in crude oil imports, which reached 23.32 million metric tons. As the world’s third-largest oil importer and consumer, India’s consumption trends play a critical role in global oil markets.
Giovanni Staunovo, an analyst at UBS, noted that the primary drivers of refinery operations are domestic demand and the net exports of refined products. He indicated that while oil demand saw a modest increase in May compared to the previous year, refined product exports were lower, leading to only a slight change in refinery throughput.
Additionally, the share of Russian oil in India’s imports saw a small decline in May. Refiners reduced their purchases of Russian crude by 15.7%, bringing the total to 1.7 million barrels per day, as indicated by tanker data from industry sources.
Notably, India’s Mangalore Refinery and Petrochemicals Ltd (MRPL) had to shut down its 144,000 barrels per day crude distillation unit in mid-May, following reports from refinery sources and traders. This closure may also have impacted the overall processing capacity during the period.