Refining capacity utilisation increased to 110% in May from 93% a year earlier as companies stepped up to meet a demand surge at home and abroad, showed official data. State-run refineries operated at 113% of their nameplate capacity, up from 87% last May.
At private refiners, the utilisation increased to 104% from 102%. Bharat Petroleum Corporation's run at 116% was the highest among all companies. The average run was 111.5% at Indian Oil Corporation and 112.5% at Hindustan Petroleum Corporation.
Reliance Industries' export-only unit operated at 88% while its other unit ran at 115%. Rosneft-backed Nayara operated at 105% of its installed capacity. All refineries together processed 19% more crude oil in May than they did a year ago. Strong fuel demand in the country as well as in the overseas market has lifted production at refineries.
Strong margins in the overseas market, especially record margins for diesel, have also prompted private refiners to increase exports.
source of the news:The Economic Times