Reliance Industries Ltd. (RIL) has decreased petroleum coke price by INR 900/MT to INR 8,050/MT with effect from 1 Apr’19, over its previous price of INR 8,950/MT, which was applicable from 18 Mar’19.
Notably, RIL had reduced its pet coke price in the middle of last month by INR 200/MT from INR 9,150/MT, which was effective from 1 Mar’19.
Similarly, Nayara Energy (erstwhile Essar Oil) has also revised its pet coke price w.e.f. 1 Apr’19 to INR 8,040/MT, a decrease of INR 900/MT against its last price of INR 8,940/MT.
Mangalore Refinery & Petrochemicals Ltd. (MRPL) has revised pet coke price w.e.f. 1 Apr’19 to INR 8,290/MT for road supplies against its last month’s price of INR 8,110/MT. Price for rake/barge supplies has been revised to INR 7,990/MT against last month price of INR 7,810/MT. Thus, there is an increase of INR 180/MT over MRPL’s last month prices for both road and rail supplies.
Price Commentaries
The sharp decrease of pet coke price by RIL – India’s largest pet coke producer – can be explained due to reduction of pet coke prices in the international market coupled with reduction in import prices of steam coal.
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 decrease is by the same amount of INR 900/MT as RIL.
Contrarily, however, MRPL has increased its prices by INR 180/MT against the sharp decrease of INR 900/MT by RIL. This is probably due to the reason that the supply-demand scenario is widely different in the market catered by MRPL.
MRPL price for rake/barge supplies is lower by INR 300/MT than the price for 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.
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