The country’s diesel demand growth is likely to return to pre-COVID-19 levels by the end of 2021 or early 2022, Ashutosh Deshpande, vice president of oil refiner Nayara Energy, said at the Platts APPEC 2020 virtual conference.
Mr Deshpande said a recovery in economic activity, good monsoon rains and the festival season in Indian would augur well for the diesel demand.
India’s diesel demand has already recovered from April’s lows, when the nation was under complete lockdown to prevent spread of COVID-19.
But refinery runs will remain subdued and there could even be further cuts in the short term, Deshpande said.
“It remains to be seen who will cut the runs further.”
Mr Deshpande said an emerging trend in the coming years would be for complex refiners to look to get into the petrochemical or retail spheres.
This week, Indian Oil Corp (IOC), said it will expand its petrochemicals capacity and integrate it with its textile business to help offset the impact of low refining margins.