India official: Do not plan to ask refiners to cut exports

India official: Do not plan to ask refiners to cut exports

India has confirmed it will not immediately alter its policy allowing refineries to export petrol, diesel, and other fuel products, ensuring operational continuity for domestic refiners amid global energy market volatility according to Maritime Gateway. A government official stated that existing export rules remain unchanged, enabling refiners to fulfill both international contracts and domestic supply obligations. This decision follows heightened uncertainty due to the ongoing Middle East crisis, which has disrupted crude oil flows through the Strait of Hormuz and prompted Indian refiners to seek alternative supply sources as reported by Energy News.

Mangalore Refinery and Petrochemicals Limited (MRPL), a state-run refiner, recently declared force majeure on gasoline exports for March and April, citing supply chain disruptions caused by the conflict. The company, which exports 40% of its refined fuel output, has already tendered three cargoes for early March loading and is negotiating settlements with buyers. India, which imports 85% of its crude oil, is exploring options such as resuming purchases of Russian crude from floating storage in Asia, a shift from earlier efforts to reduce reliance on Russian oil according to OilPrice.com.

The government has confirmed India holds 25 days of crude oil and refined product stocks, with strategic reserves sufficient for eight weeks of consumption as reported by Maritime Gateway. While contingency measures—including potential export curbs or increased Russian crude purchases—are under review, officials emphasized that current policies prioritize energy security without compromising export commitments. Indian refiners, including Reliance Industries and Nayara Energy, continue to play a critical role in global diesel and gasoline markets amid evolving geopolitical risks according to Maritime Gateway.