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Informist, Monday, Aug. 31, 2026

 

By Anand JC

 

NEW DELHI – The gross refining margins of Mangalore Refinery and Petrochemicals Ltd. is expected to remain stable around $9 per barrel in 2026-27 (Apr-Mar), similar to the levels seen in FY26, a senior company official told Informist Monday. "We are not looking at a sky-high figure (gross refining margin), anything around $9-$10 (per barrel) is good enough on a net basis," the official said. 

 

Gross refining margin is the difference between the total value of petroleum products a refinery produces and the cost of the raw crude oil used to make them. The Miniratna company's gross refining margin had jumped to $9.22 per barrel in FY26 from $4.45 barrel in FY25 on the back of improved product crack spreads and inventory gains.

 

For FY26, MRPL had reported a refining throughput of 17 million tonnes. The official expects this to remain stable in FY27 as well. Refining throughput is the total volume of raw crude oil and other feedstocks that an oil refinery processes within a specific time period. For the June quarter, MRPL's throughput had improved 26% on yar to 4.4 million tonnes.

 

MRPL is a subsidiary of Oil and Natural Gas Corp. Ltd. The company earns its core income from refining of crude oil, followed by refining of petrochemicals. The company had incurred a capital expenditure of around INR 15 billion in FY26 and expects to spend in the range of INR 12 billion-INR 15 billion in FY27. "Right now, we don't have too many big ticket expansions planned, so we have a modest capex. These will be completely funded by internal accruals," the official said.

 

MRPL sourced around 79% of its crude oil requirement through imports in FY26. Before Feb. 28, MRPL had a strategy to source one-third of its crude oil requirements from West Asia, a similar quantum from the spot markets. The war in West Asia has prompted MRPL to rejig its sourcing. "Right now, we don't have a strategy. Our main aim is to maintain continuity," the official said. 

 

Monday, its shares ended 1.1% higher at INR 170.37 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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