India’s refinery capacity utilisation has remained between 105 per cent and 108 per cent over the past six months, with higher diesel demand prompting refiners to prioritise diesel production over jet fuel.
Most Indian refineries are complex facilities capable of processing a wide range of crude grades, spanning an API range of roughly 16 to 45-48. MRPL separately plans to operate its refinery at more than 100 per cent capacity until March next year.
MRPL Diversifies Crude Supplies
MRPL operates a 300,000-barrel-per-day coastal refinery in Karnataka. Its crude sourcing is currently divided broadly into three equal parts, with one-third coming from the Middle East, one-third from domestic suppliers and the remaining third from other parts of the world.
The refiner has been diversifying its crude procurement since the beginning of the Russia-Ukraine war, reducing its dependence on individual supply regions.
Higher diesel demand in India is also influencing the product mix at refineries, with diesel being prioritised over jet fuel. Depending on refinery hardware, refiners have the flexibility to shift around 8 per cent to 12 per cent of production between diesel and jet fuel.
The combination of high refinery utilisation, flexible crude-processing capabilities and the ability to adjust the product slate allows refiners to respond to changes in domestic fuel demand and crude availability.
(Reuters inputs)