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MUMBAI: Lockdowns and travel restrictions imposed by states such as Maharashtra, Delhi, Jharkhand and Rajasthan have dampened the sale of auto fuels and aviation turbine fuel, leading to refining and marketing companies reducing throughputs, a report said on Monday.
Going forward, the possibility of such a trend gathering pace, as more and more states resort to lockdowns amid a surging case count and strained healthcare system, cannot be ruled out, ratings agency ICRA said in a note.
ICRA also notes that the benchmark Singapore gross refining margins (GRMs) remain subdued due to the global supply overhang amid a demand slowdown and are unlikely to materially improve in the near-term, owing to the second wave of Covid-19 in certain large economies such as India and Japan.