India is expected to experience fuel supply challenges in the near future as Nayara Energy, the country’s second-largest single-site refinery, plans to close its Vadinar refinery in Gujarat for maintenance starting from April 9. This maintenance activity, which is anticipated to last around 35 days, could have an impact on the availability of certain fuels, particularly LPG, as per reports from Reuters.
The Vadinar refinery, with a daily capacity of 400,000 barrels, is set to be offline temporarily, potentially reducing India’s overall refining capacity by nearly 8%. Originally scheduled for last year, the maintenance had to be postponed due to challenges in procuring essential equipment caused by European Union sanctions.
The timing of this shutdown is significant given the current global tensions, especially in the Middle East with the US-Iran conflict, which have already strained the global oil and gas markets. This situation has led to constraints on the import of crude oil, natural gas, and LPG into India, raising concerns about domestic fuel supply, particularly for cooking gas, in the short term.
In response to the potential supply constraints, certain Indian refiners like Indian Oil Corporation and Bharat Petroleum have opted to delay their maintenance schedules to address local demand. According to Sujata Sharma, a joint secretary in the federal oil ministry, these companies had earlier planned routine shutdowns at specific units but have postponed them for the time being.