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India: Domestic pet coke prices vary widely across refineries
Pet Coke
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24 Sep 2021, 18:30 IST
Steel Mint Insights

Petroleum (pet) coke price of Reliance Industries Limited (RIL) is generally referred by most of the suppliers for comparative purpose. It is also considered as a benchmark by major cement manufacturers, who are the major consumers of pet coke. The main reason for this is the fact that RIL is by far the largest producer of pet coke having almost 50% share of production within the country.

However, after commissioning of Gasification unit by RIL they have started consuming Pet coke themselves. The consumption has gradually increased as the more and more units of gasification have stabilized. In fact, they have also imported Pet coke this year for use in their gasification unit, which is permitted by Hon'ble Supreme Court. Currently, only a small portion of their production of pet coke is being sold to the domestic customers. This has resulted huge reduction in their market share in the domestic market. Consequently, IOCL has become the largest seller of Pet coke although they produce almost half of pet coke as compared to RIL.

Pet coke prices are based on imported pet coke cfr price along with factoring of the logistics cost involved and demand supply at different refineries. The local marketing conditions are also having major components for refineries.

The prices of pet coke of various major refineries have been compared with pet coke price of RIL graphically as below for the period Apr'21 to Jun'21. The RIL price has been taken as reference as zero and variations have been shown accordingly. The prices shown are all 'General prices' applicable at respective refineries. The specific pricing by various companies is not covered. Besides this, Oil companies may also have different discount structures which might vary during different period depending upon the marketing conditions.

It may be noted that graph of Nayara Energy price, which is almost same as RIL and HMEL price, which varies with IOCL Panipat refinery by about Rs 100/MT, have not been shown here.

It is observed from the price variations with respect to RIL shown above that price of BPC Bina is the highest as compared to RIL price. It is followed by IOCL Panipat. This is mainly due to additional logistic cost involved for these inland refineries. Further, the lowest price is at BPC Kochi as compared to RIL. It is followed by MRPL Mangalore. The summary of price variations with RIL is given as below:

Refinery Sep'21 INR/t Aug'21 INR/t Difference INR/t Average (FY20-21) INR/t
IOCL Panipat 51 183 (-)132 964
IOCL Koyali 131 73 (-)58 190
IOCL Paradip (-)1569 (-)927 (-)642 (-)337
IOCL Haldia (-)1399 (-)757 (-)642 (-)281
MRPL Mangalore (-)1399 (-)1467 68 (-)546
BPCL Bina 1375 1688 (-)313 1175
BPCL Kochi (-)628 (-)270 (-)358 (-)884

The above indicates there is a wide variation of prices as compared with RIL on month to basis for the above refineries. In some of the refineries even where the price was lower than RIL it has become more in some other months. This is mainly due prevailing marketing conditions in the markets during the specific months.


24 Sep 2021, 18:30 IST



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