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Latest hydrocarbon statistics revealed by Petroleum Planning and Analysis Cell (PPAC) depicted that India’s Naphtha consumption reached four-months high around 1.284 million metric tonne in July.Country’s Naphtha consumption rose 10% higher on month on month basis while it declined by 12.4% on a year on year basis in July.Analysts predict that in addition to improving demand from the gasoline blending sector,  rising demand from the petrochemical producers for serving industries such as medical plastics and equipment quintessentially required in the nation’s battle against COVID-19 has further helped in overcoming the persistent market dullness.India’s recent switch to new gasoline standards in 2020 is further expected to give a boost to the country’s demand for Naphtha.Furthermore, abrupt growth in the domestic demand has triggered significant reduction in the volumes of Naphtha exported by the local refiners.India’s Naphtha exports remained significantly low in June and July, with volume hitting 11-month low in June as per the PPAC data.
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Increasing demand for Naphtha as a feedstock for obtaining several petrochemicals, such as olefins and aromatics which are further processed to serve several downstream sectors such as plastics, textile, rubber etc., backed by increasing demand for motor fuel and Aviation Turbine Fuel (ATF) would drive the Naphtha demand in the forecast period.Browse Complete Report : India Naphtha Pricing, Demand & Supply Naphtha is a highly flammable, light derivative of crude oil obtained through processes like fractional distillation, coal-tar boiling and others.The vision which has been aimed at increasing the domestic availability of petroleum products and create major employment opportunities by 2025 will further propel the Naphtha market growth in the forecast period.However, the recent outbreak of novel Coronavirus led to an unprecedented fall in the India Naphtha demand.India’s fuel demand fell by 46 per cent in April 2020 on y-o-y basis.Players are anticipating a substantial rise in fuel demand with ease in lockdown restrictions, as vehicular traffic returned to roads and flights resumed to carry passengers.Moreover, restart of several industrial operations which consume Naphtha as feedstock will support the growth of the market in the coming months.According to ChemAnalyst report, “India Naphtha Market: Plant Capacity, Production, Operating Efficiency, Technology, Process, Demand & Supply, Type, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India’s Naphtha production outpaces the domestic demand, hence India is also among the key Asian Naphtha exporters with annual exports reaching about 7-9 MMTPA.Key players operating in India Naphtha market are Reliance Industries Limited (RIL), Indian oil Corporation Limited (IOCL), Essar Vadinar, Bharat Petroleum Corporation Limited (BPCL), Gail (India) Limited, Oil and Natural Gas Corporation Limited (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Nayara Energy, Mangalore Refinery Petrochemicals Ltd (MRPL).
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