New Delhi/Singapore India’s state‑owned Mangalore Refinery and Petrochemicals Ltd (MRPL) has temporarily shut down a crude oil processing unit and several secondary units at its 300,000 barrels‑per‑day refinery in Mangaluru due to a shortage of crude oil supplies, three sources with direct knowledge of the situation said on Thursday.
The closures, which began Wednesday evening, include a 100,000‑barrel‑per‑day crude unit and associated secondary units such as a hydrocracker. The shutdown reduces the refinery’s operational capacity and highlights supply pressures in India’s downstream oil sector amid global energy disruptions.
Supply Constraints Amid Regional Tensions
Analysts say the move reflects wider challenges for Asian refiners in securing timely replacement crude cargoes after disruptions in oil flows linked to Strait of Hormuz, where Iran‑related threats to shipping have rattled markets and strained supply chains.
The strait is a key conduit for roughly a fifth of the world’s crude oil, and interruptions there can quickly reverberate through global fuel markets. Some refiners in China have already cut runs due to similar supply concerns.
Export Suspensions and Dependence on Middle East Crude
MRPL has also suspended exports of refined fuel products, including gasoline, as crude supply tightens, according to traders familiar with the matter.
The refinery, which previously stopped sourcing Russian oil last year, remains heavily reliant on crude imports from the Middle East, underscoring India’s exposure to geopolitical disruptions.
Market Impact and Outlook
The production cuts come as oil markets remain volatile. Crude prices have climbed in recent sessions as global supply risks rise due to tensions in the Middle East, and jet fuel and diesel prices have surged in regional trading hubs.
Industry experts say MRPL’s temporary shutdown could contribute to tighter fuel availability in India and may pressure retail fuel prices if supply chains do not stabilize.
MRPL did not immediately respond to requests for comment.
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