In an effort to maintain consistent fuel availability, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), both state-owned refiners, have decided to delay routine maintenance operations at certain refineries, as stated by a senior government official on Monday. India ranks as the third-largest global consumer of crude oil and the fourth-largest refining nation, with the majority of petroleum fuels\u2014including petrol and diesel\u2014being consumed domestically, while some quantities are also exported. The country boasts a refining capacity of approximately 260 million tonnes per annum (mtpa).<\/p>\n
IOC leads the refining sector in India with a capacity of 70.25 mtpa across nine refineries. BPCL operates three refineries with a total crude processing capability of 35.3 mtpa. Regular maintenance shutdowns, known as turnarounds, are essential for ensuring safe operations, adhering to regulations, and replacing outdated equipment. These planned outages facilitate inspections, cleaning, repairs, and upgrades, which are critical for enhancing or maintaining operational efficiency.<\/p>\n
According to Sujata Sharma, Joint Secretary of the Petroleum Ministry, all Indian refineries are currently functioning at full capacity, with some even exceeding their design limits. She assured that there are adequate inventories of petrol and diesel in the country, dispelling any concerns about shortages of these essential fuels. Furthermore, Sharma indicated that the maintenance operations for specific IOC and BPCL units scheduled for the near future would be postponed, although she did not disclose which units would be affected or their revised maintenance timelines.<\/p>\n
This decision comes at a time when refiners in India are increasing domestic production of liquefied petroleum gas (LPG) to offset a decline in imports, which have been severely impacted by the effective closure of the Strait of Hormuz due to ongoing conflicts in West Asia. The disruption in maritime operations has particularly affected LPG imports, with about 40% of India\u2019s oil imports and over 55-60% of its liquefied natural gas (LNG) imports originating from West Asia via this critical waterway. Notably, around 90% of India\u2019s LPG imports rely on this narrow passage between Iran and Oman.<\/p>\n
In addition, Nayara Energy, a private refiner, is set to undertake a month-long turnaround at its 20-mtpa refinery in Gujarat starting from April 9-10. Nayara has already postponed its planned maintenance shutdown several times, initially scheduled for last year, due to sanctions from the European Union linked to its connections with Russian oil firm Rosneft, a major stakeholder in Nayara. This upcoming turnaround is expected to constrain domestic LPG production somewhat, leading to an increase in LPG imports to fill the gap.<\/p>\n
While India currently enjoys a stable supply of crude oil, petrol, diesel, and jet fuel, it continues to face the challenge of elevated prices. Specifically, LPG supplies have been notably affected, prompting the government to ration commercial and industrial LPG sales to prioritize households that rely on it. To address this situation, the government has instructed refiners to maximize LPG output and redirect propane, butane, and other petrochemical streams towards LPG production. These initiatives have resulted in a 40% increase in domestic LPG production compared to pre-war levels, meeting about 16% of the country’s overall LPG demand.<\/p>\n
As of March 26, the government reported that domestic production now satisfies over 60% of India\u2019s daily LPG requirement of 80,000 tonnes, primarily driven by household consumption. Although the average daily demand was around 90,000 tonnes, the curtailment of commercial LPG supplies has led to a reduction in overall demand. Consequently, the net daily import requirement has decreased to only 30,000 tonnes, indicating that India is producing more than it needs to import. Furthermore, the government has secured 800,000 tonnes of LPG cargoes from sources including the United States, Russia, and Australia, ensuring a month\u2019s worth of supply is already on its way, with additional procurements being arranged continuously.<\/p>\n
The authorities have also confirmed that India currently holds enough crude oil and fuel stocks to cover 60 days of consumption. Procurement for April and May has been secured, providing further assurance of supply stability in the coming months. As crude oil is processed into fuels and existing stocks are consumed, the supply situation is expected to remain steady, especially with continued imports from non-West Asian sources, particularly Russia, to counterbalance the disruptions affecting Gulf supplies.<\/p>\n
Sukalp Sharma serves as a Deputy Associate Editor at The Indian Express, where he covers various topics including energy and aviation. With over 16 years of journalistic experience, his work spans a range of sectors, including politics, development, equity markets, corporations, trade, and economic policy. He enjoys photography, which complements his passion for travel.<\/p>\n","protected":false},"excerpt":{"rendered":"
In an effort to maintain consistent fuel availability, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), both state-owned refiners, have decided to delay routine maintenance operations at certain refineries, as stated by a senior government official on Monday. India ranks as the third-largest global consumer of crude oil and the fourth-largest refining nation, with […]<\/p>\n","protected":false},"author":2,"featured_media":3797,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[702,40],"tags":[],"class_list":["post-3798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-business","category-india"],"yoast_head":"\n