India's Mangalore Refinery and Petrochemicals (MRPL.NS), opens new tab has suspended fuel exports due to the Middle East conflict that has disrupted crude oil flows from the Gulf, two sources familiar with the matter said on Wednesday.
The company has declared force majeure on all upcoming gasoline export cargoes for March and April, two separate trade sources said.
MRPL had awarded two to three cargoes of gasoline via tenders for early March loading and is in discussions with buyers on settling those supplies, one of the traders said.
MRPL has agreements with some traders to receive crude cargoes and it also sells them refined fuel, the trader added.
The state-run refiner, which runs a 300,000-barrel-per-day refinery in the southern state of Karnataka, exports about 40% of its refined fuel output.
Gasoline, gasoil and jet fuel cargoes have been temporarily suspended as the refiner is struggling to get crude oil cargoes, one of the two sources familiar with the matter said, adding the refiner has crude inventories for about two weeks.
MRPL did not immediately respond to a Reuters email request for comment.
Shipping through the Strait of Hormuz between Iran and Oman, a conduit for about a fifth of oil consumed globally, has virtually stopped after Iranian attacks on vessels in the wake of U.S. and Israeli strikes that interrupted energy trade flows.
Indian refiners fill about 40% of their crude needs through purchases from the Middle East, in addition to sourcing from spot markets and processing domestic oil.
India is scouting for alternative sources for importing crude, liquefied petroleum gas and liquefied natural gas, a government source said on Tuesday.
India's crude inventories are sufficient to meet demand for about 25 days. Refiners also hold a 25-day inventory of gasoil, gasoline and liquefied petroleum gas, the government source added.
