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India's MRPL offers first term ultra-low sulphur diesel

  • Mercados: Crude oil, Oil products
  • 26/02/21

Indian state-controlled refiner Mangalore Refinery and Petrochemicals (MRPL) has issued its first term tender offering ultra-low sulphur diesel (ULSD) for loading during April-September.

MRPL is offering a total of 390,000t (2.91mn bl) of 10ppm sulphur gasoil, or ULSD, for loading from New Mangalore on India's west coast during April-September in the term tender. It is offering one 65,000t cargo each month for loading within a three-day range from the 5-16th of the month. The pricing basis will be on the average of Argus and Platts' Mideast Gulf spot assessments of 10ppm sulphur gasoil.

MRPL is a regular exporter of diesel fuels from the west coast of India and usually offers 2-3 high-speed diesel (HSD) cargoes each month. It last sold through a spot tender one 65,000t cargo of ULSD for early-February loading from New Mangalore.

MRPL's 300,000 b/d Mangalore refinery processed 334,000 b/d crude in January, according to preliminary data from India's oil ministry, up from an average of 242,000 b/d during the fourth quarter of last year.

Diesel exports from Indian state-owned refiners are expected to rise in March as domestic demand has not yet recovered from the impact of the Covid-19 pandemic, market participants said. State-controlled refineries are also operating at high rates towards the end of the current fiscal year that ends on 31 March.

Indian state-controlled refiner Bharat Petroleum (BPCL) has issued spot tenders offering up to 75,000t (559,500 bl) of ULSD so far for March loading.

India's diesel demand in the first half of February declined by 9pc from a year earlier, the biggest such fall since August, figures from state-controlled refiners show. A resurgence of the Covid-19 outbreak in parts of India is threatening to further hurt oil demand.


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