Mangalore Refinery and Petrochemicals Ltd (MRPL) has temporarily shut one of its crude processing units along with several secondary refining units at its 300,000 barrels-per-day (bpd) Mangaluru refinery due to a shortage of crude oil supplies. The affected crude unit has a capacity of roughly 100,000 bpd and the shutdown began on Wednesday evening, according to sources familiar with the matter.
The move comes amid geopolitical tensions in the Middle East, particularly in the Strait of Hormuz, a vital corridor for global crude shipments. Disruptions in this region have delayed crude deliveries, making it challenging for Asian refiners, including MRPL, to secure replacement cargoes in time. This has forced MRPL to reduce processing temporarily to manage its operations efficiently.
In response to the supply crunch, MRPL has also suspended some refined fuel exports, prioritising domestic requirements. The refinery had already stopped importing Russian crude last year, making it more reliant on Middle East supplies. Analysts say such disruptions underscore the vulnerability of downstream operations in Asia to global supply shocks, especially in regions dependent on imported crude.
Government sources, however, clarified that MRPL’s overall operations remain stable, with adequate crude stocks on hand. They emphasised that reports of a complete refinery shutdown are misleading and that only selected units are affected.
The temporary suspension highlights how regional conflicts and supply chain disruptions can ripple through domestic fuel markets. Refiners like MRPL must balance production schedules, inventory management, and maintenance, all while navigating volatile global energy markets.
Investors and industry watchers are monitoring the situation closely, as prolonged disruptions could affect refinery throughput and fuel availability. While domestic consumption continues, the incident also reflects broader market concerns about the impact of geopolitical tensions on energy security and supply stability.
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