Base Oil Report

The world’s biggest lockdown may have eased in India, but the country’s oil refineries are finding it tough to pull off a complete recovery as fuel demand remains below pre-virus levels and stockpiles swell. Operations across 23 refineries nationwide were at 77 per cent of capacity in May, while that was an improvement from a low of 72 per cent in April, when stay-at-home orders decimated fuel demand and filled storage tanks to the brim, it was still well down on the 102 per cent recorded a year earlier. The amount of crude processed, also known as refinery throughput, was almost 25 per cent lower year-on-year last month.

The Indian domestic market Korean origin Group II plus N-60–70/150/500 prices at the current level are marginally down for lighter grades and heavier grades. As per conversation with domestic importers and traders prices for N – 70/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rs. 39.40 – 39.55/40.65– 40.80/44.40 – 44.55 per liter in bulk plus 18% GST as applicable. Discounts are being offered for sizeable quantity. The above mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.30 – 0.35 per liter on basic prices. Light Liquid Paraffin (IP) is priced at Rs.41.15 – 41.35 per liter in bulk and Heavy Liquid paraffin (IP) is Rs. 45.45 – 45.65 per liter in bulk respectively plus GST as applicable.

While in the month of May 2020, India imported 153765 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 68649 MT (45%) into Mumbai, 24005 MT (16%) into Pipavav, 19537 MT (13%) into Kandla, 19086 MT (12%) into Hazira, 8996 MT (6%) into Chennai, 6512 MT (4%) into JNPT, 5228 MT (3%) into Mundra, 865 MT (1%) into Delhi and 886 MT (1%) into Other Ports.