IOC capacity utilization slips to 84% as restrictions return

Indian Oil Corporation Ltd (IOC) on Wednesday said its capacity utilization has fallen to 84% currently from 100% last November as the deadly second wave of the pandemic has forced most states to impose strict lockdowns.

This has crimped fuel demand in India, which is the world’s third-largest oil importer and the fourth-largest buyer of liquefied natural gas. Energy consumption, especially electricity and refinery products, tends to be linked to overall demand in the economy.

Capacity utilization at IOC, the country’s largest refiner, had dropped to about 35% at the start of the lockdown during the first wave of the pandemic last year amid a sharp drop in demand for fuel products.