MRPL Confirms Stable Crude Supply, Projects Fuel Demand Growth Amid Sanctions

Mangalore Refinery and Petrochemicals Limited (MRPL) remains confident about crude oil availability despite U.S. sanctions on Russian exports, with Managing Director Sanjay Varma stating, "We see ample crude supply in the market." The refinery is currently operating at 118% capacity, processing diverse crude sources, including sanctioned Russian barrels via non-sanctioned entities.

 

Varma projected 2% growth in diesel demand and 7-8% growth in gasoline demand for FY26, aligning with India’s rising fuel consumption. MRPL plans maintenance shutdowns for its crude unit in FY26 but expects no supply disruptions, having secured alternative sources like Middle Eastern and U.S. crude. The refinery is expanding its capacity to 17 million metric tonnes annually and aims to boost petrochemical output to 15% of total production.

 

Despite sanctions impacting Russian oil discounts, MRPL’s strategic diversification ensures operational resilience. The company also plans to add 1,000 retail outlets by 2027, focusing on southern India.

Sources: Economic Times, Reuters, MRPL Investor Reports.