India’s Refineries Run at Up to 108% as Diesel Demand Surges
Oil Price
O
Oil Price
Original Source
India's refineries are operating at 105-108% capacity utilization since the Middle East crisis began, driven by surging diesel demand and tightening global markets. This elevated operating rate is expected to continue through March 2027 as supply constraints persist.
India’s refineries have been running at 105% to 108% capacity utilization in the past six months as demand for diesel soars and international fuel markets tighten amid the ongoing Middle East crisis.
Refinery capacity utilization in the world’s third-largest crude oil importer has been between 105% and 108% since the war began, a senior executive at Mangalore Refinery and Petrochemicals Limited (MRPL) said at the APPEC petroleum conference in Singapore on Wednesday.
“Most of our refiners are complex, can take a wide variety of crude from an API range of something like 16 to 45 or 48,” Nandakumar Pillai, a company director at MRPL, said at the event, as carried by Reuters.
MRPL operates a refinery with the capacity to process 300,000 barrels per day (bpd) on the coast of India’s southern state of Karnataka. The refinery has a versatile design with complex secondary processing units and high flexibility to process crudes of various API, delivering a variety of quality products, the refiner says.
MRPL will continue to run its refinery at above 100% until March 2027, Pillai told Reuters on the sidelines of the conference.
All Indian refiners are currently prioritizing diesel production at the expense of jet fuel amid soaring domestic diesel demand and a crunch in global middle distillate supply.
Diesel prices globally are soaring, and diesel cracks have hit all-time highs as supply remains constrained in the Middle East and Russia, while maximized refinery runs elsewhere cannot offset the supply lost to the U.S.-Iran war and Ukraine’s drone attacks on Russian refineries.
The re-escalation in the Middle East and the Russian ban on diesel exports pushed middle distillate cracks to record highs last week.
Analysts have been warning for weeks that diesel and other fuels are the real stress test in the oil markets, not crude oil.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Oil Nears $100 as U.S. Destroys Five Iranian Tankers
Vitol CEO: Global Fuel Markets Are "Tight and Inflexible"
Gulf Producers Find Workarounds As Hormuz Tensions Persist
Refinery capacity utilization in the world’s third-largest crude oil importer has been between 105% and 108% since the war began, a senior executive at Mangalore Refinery and Petrochemicals Limited (MRPL) said at the APPEC petroleum conference in Singapore on Wednesday.
“Most of our refiners are complex, can take a wide variety of crude from an API range of something like 16 to 45 or 48,” Nandakumar Pillai, a company director at MRPL, said at the event, as carried by Reuters.
MRPL operates a refinery with the capacity to process 300,000 barrels per day (bpd) on the coast of India’s southern state of Karnataka. The refinery has a versatile design with complex secondary processing units and high flexibility to process crudes of various API, delivering a variety of quality products, the refiner says.
MRPL will continue to run its refinery at above 100% until March 2027, Pillai told Reuters on the sidelines of the conference.
All Indian refiners are currently prioritizing diesel production at the expense of jet fuel amid soaring domestic diesel demand and a crunch in global middle distillate supply.
Diesel prices globally are soaring, and diesel cracks have hit all-time highs as supply remains constrained in the Middle East and Russia, while maximized refinery runs elsewhere cannot offset the supply lost to the U.S.-Iran war and Ukraine’s drone attacks on Russian refineries.
The re-escalation in the Middle East and the Russian ban on diesel exports pushed middle distillate cracks to record highs last week.
Analysts have been warning for weeks that diesel and other fuels are the real stress test in the oil markets, not crude oil.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Oil Nears $100 as U.S. Destroys Five Iranian Tankers
Vitol CEO: Global Fuel Markets Are "Tight and Inflexible"
Gulf Producers Find Workarounds As Hormuz Tensions Persist
🔗 Share Article
Tags:#الهند#المصافي#الديزل#الطاقة#الشرق الأوسط#الأسواق العالمية
Source: Oil Price
For Context
Related reads from the same topic or latest developments
