India's Refineries Operating at Over 105% Capacity Amid Rising Diesel Demand
Indian refineries have been operating between 105% to 108% of their capacity for the past six months due to a surge in diesel demand and tightening global fuel markets. The increase is attributed to ongoing geopolitical tensions, including conflicts in the Middle East and Ukraine's drone attacks on Russian refineries, which are constraining supply. Mangalore Refinery and Petrochemicals Limited (MRPL), with a 300,000 bpd refinery capacity, plans to maintain operations above 100% until March 2027. Indian refiners are shifting focus from jet fuel production to diesel due to high domestic demand and global supply shortages. Diesel cracks have reached record levels as the U.S.-Iran war and Russian export bans exacerbate middle distillate market stress, making diesel a key concern in oil markets.
Topics: Diesel demand Global fuel markets Middle East crisis Refinery capacity utilization