India Plans To Fill Strategic Oil Storage By The Third Week Of May
India is moving the oil to the SPR to help the country’s refineries reduce their excess crude as the lockdown to contain the outbreak of COVID-19, has dented transportation and industrial fuel consumption in Asia’s third-largest economy.
By Reuters
| Updated: 53 minutes ago
India’s fuel demand in March declined by 17.8%, the lowest in over two decades. View Photos
India’s fuel demand in March declined by 17.8%, the lowest in over two decades.
Highlights
India plans to completely fill its strategic petroleum reserve (SPR)
This is to help the country’s refineries reduce their excess crude oil
India’s fuel demand in March declined by 17.8%, the lowest in 20 years
India plans to completely fill its strategic petroleum reserve (SPR) by the third week of May by moving about 19 million barrels into the sites by then, the managing director of the country’s SPR said on Tuesday.

India is moving the oil to the SPR to help the country’s refineries reduce their excess crude as the lockdown to contain the outbreak of COVID-19, the respiratory disease caused by the new coronavirus, has dented transportation and industrial fuel consumption in Asia’s third-largest economy.

India’s fuel demand in March declined by 17.8%, the lowest in over two decades.

Also Read: Oil Prices Drop Over $1 After Top Producers Delay Meeting To Discuss Output Cuts

India will be diverting cargoes for loading in April already bought by refiners Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals Ltd. The refiners cut their crude processing after local fuel demand collapsed and are unable to store the excess oil themselves.

uc6snhn
India’s fuel demand in March declined by 17.8%, the lowest in over two decades.

“As of now the plan is to fill the caverns by (the third week of May), before the arrival monsoon rains. We are buying oil from state refiners,” H.P.S. Ahuja, the managing director of the Indian Strategic Petroleum Reserves Ltd (ISPRL) said. ISPRL is responsible for building and filling of SPR sites.

Also Read: Coronavirus Lockdown: Pump Owners Seek Financial Assistance As Fuel Demand Falls

ISPRL wants to receive the cargoes before India’s monsoon begins in May as the single point mooring system that can unload very large crude carriers (VLCC) at the port of Mangalore, which will feed two SPR sites, is shut during the three-month rainy season.

Also Read: Coronavirus Lockdown: How Petrol And Diesel Prices Have Been Affected

Play Video
27m

PM Modi Extends Lockdown Till 3rd May

Prime Minister Narendra Modi today extended till May 3 the current lockdown to control the spread of coronavirus in India and said the restrictions could be reviewed for the least affected parts of the country on April 20.

Reuters last month reported India planned to buy oil from the United Arab Emirates (UAE) and Saudi Arabia to fill its SPR to gain from low prices.

“We are taking advantage of low oil prices,” he said, adding most of these cargoes are linked to official selling prices (OSP) for April.

Saudi Arabia drastically cut its OSPs for April to boost its oil sales after major producers failed to agree to extend a supply curtailment agreement that expired at the end of March.

Ahuja said ISPRL hopes to receive the last oil cargo on May 21, while IOC supplied a VLCC containing oil from the UAE on Monday.

The SPR is divided between three locations in southern India and can store about 37 million barrels of oil, equivalent to about 9.5 days of India’s oil demand. A portion of the SPR is already filled.

The federal government has allocated about 38 billion rupees ($498.18 million) for the oil purchases, he said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

0
Comments
For the latest auto news and reviews, follow CarandBike on Twitter, Facebook, and subscribe to our YouTube channel.

2020 महिंद्रा बोलेरो BS6: जानें पुराने मॉडल के मुकाबले कितनी बदली नई बोलेरो – CarandBike
इंजन की बात करें तो एक 1.5-लीटर, तीन-सिलेंडर mHawk75 डीजल लगा है जो कि आउटगोइंग मॉडल में भी था, फर्क ये है कि अब ये BS6 मानदंडों को पूरा करता है.
Auto
Investment Today Will Show Results In Few Months
Motilal Oswal Mutual funds
|
Sponsored
Allah, please show me a way to save my son’s life. I don’t want to lose him
Ketto
|
Sponsored
Get Trained in Financial Modeling Skills Online for just ₹2,999. Enroll Now.
Skillfin Learning
|
Sponsored
Compare & Buy the Best Term Plan of 2020 on Coverfox.com
Coverfox.com
|
Sponsored
Get 1 Crore Life Cover @ 490/Month. Secure Your Family Future Now. Taalo Nahi, Le Daalo
termlife.policybazaar.com
|
Sponsored
DC Design Reimagines Hindustan Ambassador As An Electric Vehicle – CarandBike
One of India’s premier automotive design houses – DC Design – now known as DC2, is known for some of its breathtaking designs. Time and again, the company has showcased some very exciting concepts, while customised vanity vans and cars continue to remain popular with the elite in India and overseas.
Auto
2020 महिंद्रा बोलेरो BS6 फेसलिफ्ट की स्पाय फोटोज़, मिले कई कॉस्मैटिक बदलाव – CarandBike
2020 महिंद्रा बोलेरो के साथ BS6 मानकों वाला समान 1.5-लीटर का तीन-सिलेंडर इंजन दिया गया है जो महिंद्रा बोलेरो पावर प्लस में लगा है. पढ़ें पूरी खबर…
Auto
These 5 VPNs Allow You To Watch New Streaming Titles
TheTopFiveVPN
|
Sponsored