MRPL runs refinery at 105%–108% capacity, prioritises diesel output

Mangalore Refinery and Petrochemicals Ltd is operating at 105%–108% of its oil-refining capacity and is prioritising diesel production to meet rising demand, an official said.

— Source publishedWed, 9 Sept, 2026, 10:32 IST·First seen Wed, 9 Sept, 2026, 10:45 IST·Source The Hindu BusinessLine

What happened

MRPL is operating at 105%-108% of oil-refining capacity and is prioritising diesel production to meet rising demand.

Key facts

  • 105%
  • 108%

Why this matters

MRPL’s diesel-led operating posture highlights the strategic value of assets, logistics and partnerships that expand middle-distillate capacity or secure supply.

What to watch

  • Weekly Indian diesel sales growth, especially from freight, construction, agriculture and power-backup demand.
  • MRPL throughput disclosures, refinery maintenance notices and any indication that utilisation falls below nameplate capacity.
  • Diesel cracks versus gasoline, ATF and naphtha, which determine whether the current yield strategy remains economically attractive.
  • Retail diesel inventory levels, spot import tenders and supply disruptions at other Indian refineries.
  • Crude price changes and government pricing or excise interventions that could compress marketing or refining margins.
  • Keep refinery utilisation elevated while diesel demand and netbacks remain favourable.
  • Optimise crude slate and unit yields toward middle distillates, subject to product-quality and export commitments.
  • Coordinate diesel dispatches with marketing companies and bulk buyers in high-demand corridors.
  • Build contingency inventories and schedule condition-based maintenance to reduce the risk of an unplanned outage.