MRPL declares force majeure on gasoline export cargoes for March, April, traders say

NEW DELHI: India’s Mangalore Refinery and Petrochemicals declared force majeure on all upcoming gasoline export cargoes amid the Middle East conflict that has disrupted crude oil flows from the Gulf, two traders said on Wednesday.

The company had already awarded two to three cargoes via tenders for early March loading and is in discussion with buyers on settling those supplies, one of the traders said.

MRPL has swap agreements with traders to receive crude cargoes in exchange for supplying refined fuel, the trader added.

The state-run refiner, which runs a 300,000-barrel-per-day refinery in the southern state of Karnataka, exports about 40% of its refined fuel output.

Shipping through the Strait of Hormuz between Iran and Oman, a conduit for about a fifth of oil consumed globally, has virtually stopped after Iranian attacks on vessels in the wake of U.S. and Israeli strikes that interrupted energy trade flows.

Indian refiners’ Jan crude processing slips

MRPL did not immediately respond to a Reuters email request for comment. A source with the company, who sought anonymity, confirmed the force majeure.

Indian refiners fill about 40% of their crude needs through purchases from the Middle East, in addition to sourcing from spot markets and processing domestic oil.

India is scouting for alternative sources to importing crude, liquefied petroleum gas and liquefied natural gas, a government source said on Tuesday.

In January, MRPL said it was exploring purchases of Venezuelan oil after the refiner halted imports of Russian oil to comply with Western sanctions.

India’s crude inventories are sufficient to meet demand for about 25 days. Refiners also hold a 25-day inventory of gasoil, gasoline and liquefied petroleum gas, the government source added.