Now, India a key contributor to crude slump due to nationwide lockdown

New Delhi: From being a big beneficiary of low oilNSE -0.33 % prices just a fortnight ago, India has turned into a key contributor to the global price slump as nationwide lockdown destroys demand, cuts run rates at refineries and shrinks local gas output and its import. The lockdown has hammered consumers’ ability to benefit from low oil and gas prices and is set to dramatically squeeze the government’s revenue from the sector despite recent duty hikes.

Storages at refineries are overflowing with refined products as motorists go off the roads, planes disappear from the skies and factories shut, forcing refiners to cut utilisation. Indian Oil has cut run rate by 30%. Other refiners too have sharply slowed, forcing some to look for new places to store their products.