All the refiners in the country, except Nayara Energy, will delay their refinery maintenance schedules due to the ongoing war in West Asia and the subsequent supply constraints, as India steps up efforts to safeguard domestic fuel supplies amid a deepening crisis in the region.
Speaking to reporters, Sujata Sharma, joint secretary in the ministry of petroleum and natural gas, said the decision was taken after the government’s consultations with all refiners, signalling a coordinated response to the emerging supply crunch.
Indian refiners have postponed maintenance shutdowns of their units to meet local fuel demand, with Indian Oil Corporation and Bharat Petroleum Corporation among those that had planned routine shutdowns at some of their refineries but have now deferred them to sustain output.
Context behind the decision
The move comes as India grapples with supply disruptions following the effective closure of the Strait of Hormuz, a critical transit route for crude oil, liquefied petroleum gas (LPG) and natural gas. The government has invoked emergency measures, directing refiners to maximise LPG output to safeguard cooking fuel supplies for households.
“All refineries are operating at peak capacity, with some exceeding 100% utilization,” Sharma said at a briefing in New Delhi, highlighting the strain on the system as refiners push operations to maintain supply.
India depends heavily on West Asia energy flows, with about half of its crude oil and more than 90% of LPG imports sourced from the region, much of it routed through Hormuz. While US waivers on Russian crude purchases have eased pressure on oil supplies, securing alternatives for LPG remains a challenge.
Nayara Energy to proceed with planned shutdown
However, Nayara Energy will proceed with its planned shutdown. Sharma said the company’s Vadinar refinery will undergo a 35-day maintenance from April 9 due to unavoidable circumstances and safety issues. The 400,000 barrels-per-day refinery outage is expected to tighten LPG availability, although the government plans to offset the shortfall through imports.
Nayara had earlier deferred the maintenance scheduled last year due to difficulties in procuring key equipment following European Union sanctions.
Delaying refinery maintenance has become critical as India needs regular domestic LPG supply, which is already in short supply, even as demand for petrol and diesel continues to grow at a record pace.
India is the fourth-largest refiner globally, with an annual crude processing capacity of 258 million tonne. On March 4, the Centre has invoked the Essential Commodities Act (ECA), 1955, directing domestic oil refiners to prioritise the production of liquefied petroleum gas (LPG).