Indian Oil Corporation (IOC) is expecting petrol and diesel demand to return to pre-pandemic levels faster than previously anticipated but it is reviewing refinery expansion plans in view of permanent demand destruction in some sectors. Petrol and diesel sales have seen phenomenal improvement in the first half of September and if the trend continues demand will return to pre-COVID levels within Q2 (July-September) of FY21.
However, jet fuel demand, which has been pummelled by stopping of flights and only restricted operations even after the lockdown was lifted, will be difficult to predict. The company's diesel sales rose 22 percent month-on-month in the first fortnight of September but was down 9 percent year-on-year whereas petrol sales are up 9 percent month-on-month and registered growth of 1 percent vis-a-vis September 2019.
IOC is the largest enterprise in the country and the foremost ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.
