- BPCL records steepest monthly price cut
- International prices remain below May highs
India’s domestic petcoke market extended its correction in July 2026, with all major refiners reducing prices as easing global supply concerns and improving freight conditions continued to soften market sentiment. BPCL announced the steepest price cuts during the month, while IOCL, Nayara Energy and CPCL also lowered prices following consecutive monthly reductions. The decline reflected improving international conditions after tensions between the US and Iran eased, reducing freight disruptions and supply concerns. However, domestic petcoke prices remained above pre-conflict levels as marine insurance premiums continued to stay elevated. The market also remained cautious as the monsoon season and comfortable domestic fuel availability encouraged buyers to procure on a requirement basis.
IOCL extends price correction
Indian Oil Corporation (IOCL), the country’s second-largest petcoke producer and market leader by domestic sales, reduced prices across all refineries effective 10 July 2026, marking its second consecutive monthly price cut. Road prices at Koyali and Panipat declined by INR 800/t to INR 15,420/t and INR 16,680/t, respectively. Paradip prices fell by INR 830/t to INR 14,430/t, while Haldia declined by INR 880/t to INR 14,550/t. Rake prices remained INR 200/t below road prices at all refineries except Panipat, where rake loading is unavailable. Compared with June, the latest reductions were more moderate, indicating that the domestic market continued to normalise.
Nayara and CPCL continue price cuts
Nayara Energy reduced its domestic petcoke price by INR 1,680/t to INR 17,650/t, effective 1 July 2026, following a similar reduction in June. CPCL also lowered its price by INR 1,540/t to INR 17,760/t, broadly matching the downward trend across domestic refiners. Despite two consecutive monthly corrections, Nayara’s July price remained 31.4% higher y-o-y and INR 1,610/t above the April 2026 level. CPCL continued supplying entirely through road, with average monthly dispatches of 40-45 kt, primarily catering to Tamil Nadu and Andhra Pradesh.
BPCL records steepest correction
BPCL announced the sharpest reduction among domestic refiners during July. At Bina, road prices declined by INR 2,500/t to INR 18,500/t, while rake prices fell by INR 3,000/t to INR 18,000/t. At Kochi, rail prices also declined by INR 2,500/t to INR 17,000/t. The sharp correction followed the price increases implemented in June and reflected easing market conditions. Availability during the month was reported at around 20-25 kt at Bina and 70-75 kt at Kochi.
Global factors continued influencing prices
The correction across domestic refiners reflected improving international market conditions following the easing of the US-Iran conflict, which reduced freight disruptions and supply concerns. Although freight costs moderated, marine insurance premiums remained elevated due to intermittent geopolitical uncertainty and concerns over vessel movement through the Strait of Hormuz. Compared with the sharp increases recorded during April and May, domestic petcoke prices continued to move closer towards pre-conflict levels, although they remained above those levels.
Outlook
Domestic petcoke prices remained on a corrective path during July as refiners aligned prices with improving international market conditions. However, elevated marine insurance costs and lingering geopolitical uncertainty continued to keep prices above pre-conflict levels, while buying remained cautious amid the monsoon season.
Leave a Reply