Two of India's biggest state-owned fuel retailers issued rare gasoline import tenders late Tuesday as a number of planned and unplanned refinery shutdowns threaten to create a supply crunch in the country, sources familiar with the matter said Wednesday.
Hindustan Petroleum Corp. Ltd. and Bharat Petroleum Corp. Ltd. are seeking to import a combined 53,000 mt of gasoline in October -- a move that traders said would likely boost sentiment across regional markets that have been weighed down by sluggish demand from Indonesia, Asia's biggest gasoline importer.<
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"It's because there's a shortfall. There's a supply deficit in the country because of the various refinery shutdowns," said an executive with a state-owned fuel retailer who did not want to be named.
HPCL is seeking a total of 28,000 mt of 92 RON gasoline for delivery October 5-8 at Vizag, where operations at its 166,000 b/d refinery have been hampered for the second time this year because of a fire in late August.
An earlier fire in May at the Vizag refinery prompted a surge in gasoline imports by state-owned fuel retailers, who often have swap arrangements in place to supply each others' fuel stations in regions where they do not have their own refineries.
BPCL is seeking 25,000 mt of 92 RON gasoline to be delivered October 18-20 at Kochi ahead of major maintenance at the 190,000 b/d refinery. BPCL plans to shut half the plant from mid-November for about a monthlong turnaround, a source familiar with the matter said Wednesday.
In late September, Indian Oil Corp. will shut the 160,000 b/d Mathura refinery in northern India for about 35-40 days for a turnaround, a company executive said Wednesday. The company operates 10 refineries across India and is the country's biggest fuel retailer.
Maintenance at the Mathura refinery's fluidized catalytic cracker unit is expected to last about two months, but the company for now does not plan to import gasoline from regional markets, the executive said.
"We'll produce more from our other refineries, so I think we don't need to import," he said.
India is the region's largest gasoline exporter. Imports are rare, and they are often tied to heavy maintenance or unplanned shutdowns. The unexpected demand now will likely boost Asian products cracks that have plunged since hitting a record high in mid-July.
"Surely there will be an impact" on regional fundamentals, said a Singapore-based trader. "The market here has been a bit [supply] heavy but seems to be clearing up."
In the fiscal year ended March 31, India imported 325,000 mt of gasoline and exported about 16.7 million mt, according to data from the oil ministry's research arm, the Petroleum Planning and Analysis Cell.
