Reliance Industries Ltd. (RIL) has maintained its petroleum coke price at INR 8,850/MT with effect from 1 Feb’19, which was applicable from 1 Jan’19.
Similarly, Nayara Energy (erstwhile Essar Oil) has maintained pet coke price w.e.f. 1 Feb’19 at INR 8,840/MT.
However, Mangalore Refinery & Petrochemicals Ltd. (MRPL) has revised pet coke price w.e.f. 1 Feb’19 to INR 7,910/MT for road supplies against its last month’s price of INR 7,710/MT. Price for rake/barge supplies is revised to INR 7,610/MT against its last month’s price of INR 7,410/MT. Thus, there is an increase of INR 200/MT over MRPL’s last month prices.
Price Commentaries
The price rollover by RIL, India’s largest producer of pet coke, comes when the international prices have marginally softened. Possibly, the increase of domestic demand and lower availability of pet coke might be the company’s reason to maintain its price.
Pet coke consumption in gasification units of RIL has increased after stabilization of units, leaving lower availability for open domestic market.
Nayara Energy typically follows the RIL price and generally maintains a difference of INR 10/MT with respect to RIL. Hence, its price has also been rolled over.
The price increase by MRPL against rollover by RIL indicates disparity in supply and demand on regional basis. This is also due to local situations and inventory positions at refineries. 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.
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