IOCL and HMEL Reduce Pet Coke Prices in line with RIL

Indian Oil Corporation Ltd. (NSE: IOC), the country’s second-largest producer of petroleum coke, has decreased its pet coke prices from various refineries, with effect from 6 Apr’19.

Petcoke price ex-Koyali refinery transported by road is revised to INR 8,130/MT from INR 8,810/MT, a decrease of INR 680/MT. The price of pet coke transported by rake is revised to INR 7,930/MT from INR 8,610/MT, which is also a decrease of INR 680/MT.

Panipat refinery’s general price is revised to INR 8,250/MT from INR 8,850/MT, a decrease of INR 600/MT. Similarly, price for Punjab, Haryana, Jammu and Kashmir, Chandigarh is revised to INR 8,850/MT from INR 9,450/MT, also a decrease of INR 600/MT.

Paradip refinery’s price for road supplies is revised to INR 8,200/MT from INR 8,420/MT, a decrease of INR 220/MT. The rake price is revised to INR 7,900/MT from INR 8,120/MT, also a decrease of INR 220/MT.

HPCL-Mittal Energy Limited (HMEL) has also decreased its pet coke price from Bhatinda refinery w.e.f. 6 Apr’19, by INR 600/MT to INR 9,650/MT from INR 10,250/MT.

Price Commentaries

State-run IndianOil has typically followed the pricing trend set by Reliance Industries (RIL) for the current month, by decreasing prices of pet coke produced in its various refineries, though with varying amounts.

At Panipat, the pet coke price for Punjab, Haryana, Jammu and Kashmir, Chandigarh remains higher by INR 600/MT, as compared to the general price for other states.

At Paradip, IOC has been declaring rake price separately, after commissioning of rake facility on 29 Nov’18. The rake price is lower by INR 300/MT than the price applicable for road supplies/

Presently, about 4-5 rakes are being supplied from Paradip in a month. This is expected to increase gradually in coming months after streamlining of rake placement.

The amount of decrease in price by HMEL is same as IOC Panipat. However, the decrease is much lower than RIL, possibly considering the lower product availability in the northern market, particularly as Paradip refinery’s delayed coker unit (DCU) recently recommenced operations post shutdown.