Reliance Industries Ltd. (RIL) has increased petroleum coke price by INR 300/MT to INR 9,150/MT with effect from 1 Mar’19, over its previous price of INR 8,850/MT, which was applicable from 1 Jan’19.
Similarly, Nayara Energy (erstwhile Essar Oil) has also increased pet coke price w.e.f. 1 Mar’19 to INR 9,140/MT, which is INR 300/MT higher as compared to its previous price of INR 8,840/MT.
Mangalore Refinery & Petrochemicals Ltd. (MRPL) has revised pet coke price w.e.f. 1 Mar’19 to INR 8,110/MT for road supplies against its last month’s price of INR 7,910/MT. Price for rake/barge supplies has been revised to INR 7,810/MT against last month price of INR 7,610/MT. Thus, there is an increase of INR 200/MT over MRPL’s last month prices.
Price Commentaries
The price increase by RIL, which is by far India’s largest pet coke producer, is relatively in line with the international pet coke commodity prices, which have also moved upwards as of late.
Moreover, there has been a gradual increase in the country’s pet coke demand, whereas the overall domestic availability has reduced considerably—especially because RIL’s own pet coke consumption in its gasification project has increased substantially, tightening supply for open domestic market.
Nayara Energy typically follows the RIL pricing and generally maintains a difference of INR 10/MT with respect to the RIL price. Hence, its price increase is by the same amount of INR 300/MT as RIL.
MRPL price for rake/barge supplies is lower by INR 300/MT than road supplies, which is the estimated expenditure incurred by the customers to shift the product from the refinery for rake/barge loading.
Indian Oil Corporation Ltd. (IOCL), India’s second-largest pet coke producer, is yet to revise prices from its various refineries.
Notably, the other pet coke producing companies may also be expected to follow this trend in their price revisions.
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