Crashing oil refining industry, lockdown has reduced demand by 5 percent

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BanglaHunt Desk: Prime Minister Narendra Modi has asked India's 1.5 billion people to stay home in the world's largest lockdown for three weeks, shutting down Asia's third largest economy, and millions of economically weaker people are currently unemployed.

As well as locks nationwide, the demand for fuel has dropped. Statistics show that in general, the quantity of oil consumed in India is 5 percent less than the current demand. Bloomberg report suggests that less than 1 million barrels of oil is being consumed per day due to lockdown in India. Demand in March this year has decreased by 5 percent compared to last year. As the lockdown progresses, the amount of damage will increase. Which will weaken us economically.

In the wake of declining oil demand nationwide, top companies have their storage tanks full. As a result, companies have been forced to reduce refinement of crude oil. They think that even if the lockdown goes up, it will take several days for the oil demand to reach its previous state.

Indian Oil Corporation (IOC) has reduced crude processing in India from 5% to 5% to “avoid tank top-up situation”. Besides, South India-based Mangalore Refineries and Petrochemicals Ltd has already closed one third of its 1.5 bpd refining capacity and is preparing to close the rest next week as demand slows down, a company source said.

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