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MRPL Halts Fuel Exports Amid Iran Conflict

Bloomberg Markets •
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India's Mangalore Refinery and Petrochemicals Ltd. has suspended oil product exports after escalating conflict in the Middle East disrupted crude shipments from the Persian Gulf. The state-owned refiner, operating a 300,000-barrel-a-day plant in Karnataka, informed customers on Wednesday that it may not receive crude deliveries, preventing it from fulfilling export commitments.

MRPL relies entirely on imported crude to produce diesel, gasoline, and jet fuel for international markets. The company holds approximately two weeks of crude inventory, according to sources familiar with the matter. Israeli and US strikes on Iran have all but halted tanker traffic through the Strait of Hormuz, a critical chokepoint for global energy flows.

The suspension highlights how regional conflicts directly impact global fuel supplies. While sources could not confirm a formal force majeure declaration, the practical effect is the same - MRPL cannot guarantee deliveries to its customers. The disruption comes at a time when global fuel markets are already strained by geopolitical tensions.