Indian refineries operate at up to 108% capacity amid diesel demand
Indian oil refineries have operated at 105–108% capacity utilisation over the past six months amid growing demand for diesel fuel. OilPrice reports, citing a statement by the director of Mangalore Refinery and Petrochemicals Limited (MRPL), as quoted by Reuters.
Priority for diesel fuel
MRPL Director Nandakumar Pillai said at the APPEC conference in Singapore that Indian refineries have maintained this level of capacity utilisation since the start of the war in the Middle East. According to him, most Indian refining facilities have a complex configuration and can process different grades of crude oil with an API rating of approximately 16 to 45–48.
According to OilPrice, Indian refiners are currently prioritising diesel production at the expense of jet fuel. The publication links this to growing domestic demand for diesel and a shortage of middle distillates on the global market.
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MRPL operating above planned capacity
MRPL operates a refinery on the coast of the southern Indian state of Karnataka that can process 300,000 barrels of crude oil per day. According to the company, the plant has secondary processing units and can process crude oil of different quality, producing various types of petroleum products.
Pillai told Reuters that MRPL plans to maintain its refinery’s capacity utilisation above 100% until March 2027. OilPrice also notes that global diesel prices are rising, while refining margins for middle distillates reached record levels last week.
