MANGALURU: The Mangalore Refinery and Petrochemicals Ltd (MRPL) is currently operating its refinery at nearly 120% capacity in the backdrop of major global maritime disruptions, said its director Nandakumar V Pillai.
He was speaking at a seminar on ‘Maritime Adversities and the Role of Stakeholders and the Indian Port Act 2025’, organised by New Mangalore Port Authority (NMPA) on Wednesday.
Highlighting efforts to sustain domestic fuel supply, Pillai said LPG has become a key focus area. “We have ramped up production by nearly 30%, reaching about 45 lakh kg per day, which is equivalent to around 10 lakh cylinders daily,” he said, noting that supply chain challenges continue.
He emphasised the responsibility of ensuring uninterrupted fuel availability and protecting critical infrastructure. Addressing maritime challenges, he stressed that resilience and collaboration are essential, calling for flexible and robust supply chains, greater adoption of digital technologies and smarter port operations.
Pillai also underscored the importance of disaster preparedness. “Despite best efforts, natural calamities and disruptions can occur. What matters is our level of preparedness and response,” he said, adding that safety culture must extend beyond rules and standard operating procedures.
Providing operational data, he said through MRPL, around 346 vessels called at the port last year. As of midnight on March 31, cargo handling had reached 23.4 million tonnes, highlighting the refinery’s strong dependence on port infrastructure.
Referring to ongoing global geopolitical tensions, Pillai noted that the economic impact of conflicts is being felt far beyond war zones. He pointed to disruptions in the Strait of Hormuz, a crucial route for crude shipments from West Asia, where vessel movement has been severely affected, with nearly 3,000 ships reportedly awaiting clearance.
He added that crude oil prices have almost doubled, from about $69 per barrel in February to an average of $128 in March, while diesel has become one of the costliest commodities in the global market.
“Oil is available at ports but cannot be transported,” he said, adding that alternate routes such as the Red Sea are also facing security threats, even as some seafarers continue to navigate these risks.
Pillai highlighted a steep rise in cargo insurance costs. “Earlier, insurance ranged between 0.25% and 0.3% of cargo value. Now it has surged to 5% to 15%, along with additional war risk premiums of about Rs100 crore per cargo,” he said. He added that uncertainties in loading schedules and conflict-related disruptions have made operations increasinly unpredictable.