Refinery shutdown costs MRPL Rs 20 cr/day; diesel supplies may be hit

A.J. Vinayak Richa Mishra Mangalore/New Delhi | Updated on November 15, 2017 Published on April 25, 2012


Mangalore Refinery and Petrochemicals Ltd (MRPL) is losing about Rs 20 crore daily due to the complete shutdown of its 300,000-barrels-a-day refinery.

The shutdown was caused by acute water shortage. The shutdown will have a direct impact on fuel supplies particularly diesel, industry observers said. Most of the diesel produced by MRPL is for domestic consumption and caters to the Southern market.

“However, oil retailers make back-up arrangements so that there is no shortage felt in the country. The arrangements could be in the form of imports also,” they said. Besides, replacement could come from other refineries in the country.

Diesel accounts for over a third of country's refined products consumption. In April-March 2011-12, consumption rose 7.8 per cent over the previous year. In March, the annual sales rose 10.3 per cent. This was mainly on higher sales of diesel cars and power sector demand.

Sources privy to developments at MRPL said, “The company has deferred export of product cargo as of now. For crude vessels, the company is paying demurrage charges.”

Demurrage is delaying of a vessel that is caused by charterer's failure to load or unload the cargo, before the time of scheduled departure. Sources said that demurrage charges constitute a significant portion.

As on Wednesday, three vessels with a total 2.78 lakh tonnes of crude oil were waiting at the outer anchorage of New Mangalore Port Trust (NMPT) for discharging the cargo.

“Added to this, the company is not operating the plant. We cannot estimate the losses now,” sources said.



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Published on April 25, 2012
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