Indian Refineries Max Out as Global Diesel Demand Surges
India's refineries have been operating at maximum capacity since the war in the Middle East began, running between 105% and 108% utilization. According to Nandakumar Pillai, a director at Mangalore Refinery and Petrochemicals Limited (MRPL), the increased demand for diesel is the main reason behind this surge.
MRPL's refinery, which has a capacity of processing 300,000 barrels per day, has been running above 100% since the war began. Pillai confirmed that the refinery will continue to operate at maximum capacity until March 2027. He noted that most Indian refineries are complex and can process various types of crude oil.
The global diesel market is facing a crunch due to supply constraints in the Middle East and Russia, leading to record-high middle distillate cracks. Analysts have warned that diesel demand is putting pressure on the oil markets, not just crude oil prices.