A wave of shutdowns will hit Indian state-owned refineries next year as the country prepares for Bharat Stage 6 (BS 6) from April 2020, company officials said, in moves that could temporarily dent oil demand and push up imports of refined fuels. India, the world’s third-biggest oil importer and consumer, has surplus refining capacity and rarely imports diesel and petrol.
It also means that demand for fuel produced by India’s privately owned refiners will likely climb during the period, as state refiners seek to fill the gap. State refiners—Indian Oil Corp. (IOC), Bharat Petroleum, Hindustan Petroleum Corp. Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL)—account for about 60% of the country’s nearly 5 million barrels per day (bpd) capacity.
The refiners will have to shut diesel and petrol-making units at their plants for 15 to 45 days to churn out BS 6-compliant fuels from January 2020 to be able to sell them from April of that year. Read More