Mangaluru: West Asia war raises global oil concerns; MRPL not worried for now

Mangaluru: West Asia war raises global oil concerns; MRPL not worried for now

Mangalore Today News Network

Mangaluru, Mar 6, 2026: Fears surrounding the ongoing Iran–US–Israel conflict have raised some concern even at MRPL, the state’s only oil refinery. The possibility that the war situation may continue for another month has added to the anxiety.

Mangalore Refinery and Petrochemicals Limited sources said the refinery currently has enough crude oil to continue refining operations for about 10 days. In addition, around 53,000 metric tonnes of crude oil is stored in the underground storage facility of Indian Strategic Petroleum Reserves Limited at Permude.

There is also an expectation that some quantity of light crude oil may be supplied from the Krishna-Godavari Basin within the country. However, if the war continues for about a month, the situation could become worrying.

At present, no oil transport vessels are operating in the region. A majority of India’s crude oil imports come from Gulf countries such as Saudi Arabia, Iran, Iraq, Qatar and Bahrain. Nearly one-third of India’s crude oil imports pass through the Strait of Hormuz, which has reportedly been closed by Iran.

In anticipation of such crises, India has recently diversified its crude oil sources instead of depending on a single region. Although crude oil can be sourced from countries such as Russia, United States, Nigeria and Venezuela, transportation costs from these countries are expected to be higher. With oil shipments from Gulf nations disrupted, there are also fears that prices of crude from alternative sources could rise.

Even if the war stops immediately, it may take considerable time for ships to return to ports, load crude oil and resume normal movement.

Officials at New Mangalore Port said that even if the conflict ends soon, it may take around two weeks for shipping traffic to return to normal. Ships must enter ports according to queue systems, and only a limited number can dock at a time, while loading crude oil also takes time.

Currently, there has been no disruption to ships arriving at New Mangalore Port. As the Suez Canal remains operational, vessels from Africa and the United States are continuing to arrive as usual.

Coal continues to arrive from South Africa and Indonesia, while edible oil shipments are coming by ship from Indonesia and Malaysia. Iron ore exports to China are continuing. However, exports of certain products to Middle Eastern countries have currently been suspended.