MRPL Operating Normally; India Comfortable on Oil, LPG Supplies Despite Hormuz Disruption: Govt Sources

The Mangalore Refinery and Petrochemicals Limited (MRPL) is operating normally and will not shut down, government sources said to Republic Media Network, adding that the facility has ample crude supplies and adequate stock.

The clarification comes amid reports suggesting a possible shutdown of the refinery. Officials said such reports are incorrect, stressing that MRPL is well stocked and functioning as usual.

India Comfortable on Crude Oil, LPG Supplies

Sources added that India remains in a “comfortable position” in crude oil, oil products, and LPG, despite disruptions in global supply routes. According to officials, around 30% of India’s oil supplies have been affected due to the closure of the Strait of Hormuz. However, authorities said the country currently has adequate stock and diversified supply sources, which will help manage the situation, “Today, we have more energy sources than what is stuck in the Strait of Hormuz. We are in a comfortable position in crude oil, oil products, and LPG." 

India will ramp up supplies from other geographies to compensate for the supply disruption from the Hormuz route.

Russian Oil Imports Rise to Nearly 20%

Government sources also said India has continued purchasing crude oil from Russia since 2022.

In 2022, Russia accounted for only 0.2% of India’s total crude imports. By February 2026, the share had increased to nearly 20% of total crude oil imports. India imported about 1.04 million barrels per day (mbpd) of Russian crude in February 2026, making Russia one of the country’s major suppliers.

They added that all LPG refineries have been directed to increase production of LPG to ensure sufficient supply. India is in a comfortable position with LPG stocks and will use petrochemicals for domestic use if needed to ease consumption demand.

India has also started importing LPG from the United States. Indian public sector oil companies had signed a one-year contract in November 2025 to import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for the contract year 2026. Imports under this agreement began in January 2026, sources said.

The agreement covers roughly 10% of India’s total annual LPG imports. The cargoes are being sourced from major global energy firms such as Chevron, Phillips 66, and TotalEnergies Trading.

India currently relies on imports for nearly 60–65% of its domestic LPG demand, with about 90% of these imports traditionally sourced from West Asian producers. The new supply arrangement with the United States is a broader effort by India to diversify its energy import basket and reduce dependence on a single region.

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