 "crude oil")
By Seher Dareen
(Reuters) -Indian refiners' crude oil throughput rose in January, holding near 21-month highs reached in November, with fuel demand and refinery runs expected to grow further on the back of a strong economic recovery.
Crude oil throughput in January was however down 0.5% year-on-year to 5.13 million barrels per day (21.71 million tonnes), government data showed on Wednesday.
Throughput in January was 1% higher from December levels and holding near November's 5.25 million bpd.
"It shows continued recovery," said Refinitiv analyst Ehsan Ul Haq, adding that although high oil prices are a drag, the end of COVID-19 restrictions bode well for demand and crude throughputs.
Initial government estimates show that India's fuel demand is likely to grow 5.5% in the next fiscal year beginning April 1, reflecting a pick-up in industrial activity and mobility in Asia's third largest economy.
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Gasoil and gasoline sales also rebounded in the first fortnight of February from the previous month in India as states lifted most of the COVID-induced restrictions.
Indian refiners operated at an average rate of 102.6% versus 101.2% in December, the government data showed.
Top refiner Indian Oil Corp (IOC) last month operated its directly-owned plants at 98.2% capacity. Reliance, owner of the world's biggest refining complex, operated its plants at 91.1% capacity in January.
Processing was also impacted by unit shutdowns at some refineries, as per the monthly production report released by the Ministry of Petroleum & Natural Gas.
Crude oil production fell about 2.3% to around 593,000 barrels per day (2.51 million tonnes) year-on-year, the data showed, while natural gas output jumped 12.2% to 2.86 billion cubic metres year-on-year.
"Despite emphasis by the Indian government to boost output, India remains dependent on imports, which is likely to increase in the long-run due to rising demand," Ul Haq added. [O/INDIA2]
(Reporting by Seher Dareen and Swati Verma in Bengaluru; Editing by Emelia Sithole-Matarise)
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