State-run refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) has issued a clarification on Thursday, March 5, stating that it has not declared force majeure and is unaware of reports claiming it has halted fuel exports due to the Iran conflict. The company confirmed there is no undisclosed information that could explain any unusual movement in its stock trading and noted there are no regulatory or legal proceedings relevant to the matter. This clarification comes after reports suggested that disruptions in crude flows in West Asia were affecting MRPL's fuel exports, which the company has now categorically denied as factually incorrect.
State-run refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) has shut down one crude unit and certain secondary units at its 300,000 bpd capacity refinery, according to sources aware of the developments reported by The Hindu BusinessLine. The shutdown represents a significant operational disruption at the company's major processing facility amid a broader global energy supply crisis. The state-owned refiner, which operates a 300,000-barrel-a-day plant in Karnataka, relies on imported crude to produce fuels for domestic and overseas markets and currently holds crude inventories sufficient for roughly two weeks of operations.
The production halt follows acute crude shortage conditions, as reported by sources to The Hindu BusinessLine. This supply constraint has forced the refinery to temporarily suspend operations at multiple processing units, highlighting the severity of the current market conditions affecting crude oil availability for refining operations. The crisis is part of a broader global energy supply disruption that has sent oil prices surging to $84 and created significant market volatility across energy sectors.
The global energy crisis has been compounded by Iran's claim of 'complete control' over the Strait of Hormuz, which has effectively closed the critical shipping route for energy supplies. As per Oilprice.com, this disruption has removed 20% of global LNG supply from Qatar and the UAE, creating immediate and immense supply disruptions across global markets. The closure has particularly impacted China, India, and Taiwan as the primary importers most exposed to this risk, with Europe also feeling secondary effects.
The energy crisis has triggered significant market reactions, with Asian LNG prices soaring to three-year highs and European gas prices jumping 30% as Qatar halted LNG production at its Ras Laffan hub. According to Oilprice.com, the JKM-TTF spread measuring Asian spot LNG prices to Europe's gas benchmark surged to a multi-year high of over $6 per million British thermal units. The crisis has also affected oil markets, with oil prices reaching $84 as supply risks become increasingly real for global energy consumers.
Despite the operational clarification, shares of Mangalore Refinery and Petrochemicals Ltd ended at ₹196.35, up by ₹5.15, or 2.69% on the BSE on March 5, 2026. The positive market response suggests investor confidence in the company's operational continuity despite the global energy crisis and initial market concerns about potential disruptions. MRPL, which exports diesel, petrol and jet fuel, continues to maintain its market position as India's largest liquefied natural gas importer amid the ongoing supply chain challenges.
