Mangalore Refinery and Petrochemicals Ltd (MRPL) has ruled out current purchases of US crude due to pricing constraints but remains open to future deals. The company is actively sourcing discounted alternatives and remains optimistic about continuing Russian oil imports despite geopolitical pressures, aiming to maintain cost-effective supply for its refining operations.
Mangalore Refinery and Petrochemicals Ltd (MRPL), a key player in India’s downstream oil sector, has clarified its current stance on global crude sourcing. In a statement issued by senior executives, MRPL confirmed it is not buying US crude oil at present due to unfavorable pricing, while expressing intent to continue Russian imports and explore discounted alternatives.
Major Takeaways:
US Crude Off the Table for Now: MRPL executives stated that current US crude prices are not viable for the company’s refining economics. While the option remains open for future consideration, no immediate purchases are planned.
Russian Oil Still in Play: Despite mounting geopolitical pressure—including recent remarks by US President Donald Trump urging India to halt Russian oil imports—MRPL remains hopeful of continuing Russian crude purchases, citing favorable pricing and established supply chains.
Exploring Discounted Alternatives: The company has already begun evaluating other sources of discounted crude, including Middle Eastern and African blends, to ensure cost-effective feedstock for its refining operations.
Strategic Procurement Focus: MRPL is prioritizing price competitiveness and supply reliability, especially as global benchmarks like Brent and WTI remain volatile amid shifting trade dynamics and OPEC+ production adjustments.
Geopolitical Context: The statements come amid heightened scrutiny of India’s energy ties with Russia. While the government has not officially confirmed any policy shift, refiners like MRPL are navigating a complex landscape of sanctions, tariffs, and diplomatic negotiations.
Operational Implications: MRPL’s refining capacity of 15 million metric tonnes per annum (MMTPA) requires consistent and affordable crude sourcing. Diversifying suppliers is key to maintaining throughput and margin stability.
Notable Updates:
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Brent crude rose 1.1% to $62.61 per barrel following Trump’s comments, while WTI climbed to $58.76, reflecting market concerns over supply tightening.
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MRPL continues to invest in process optimization and residue upgrading to improve yield and reduce dependence on high-cost crude blends.
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As global energy dynamics shift, MRPL’s procurement strategy underscores the balancing act between cost, compliance, and continuity in India’s refining sector.
Sources: Onmanorama, Indian Express, Gulf News
