Nayara's 35-day halt may shave 8% off India refining capacity amid Iran war

India’s refining sector is set to face fresh pressure as Nayara Energy plans a 35-day shutdown of its refinery operations starting early April, a move expected to temporarily take around 8% of the country’s total refining capacity offline.

The planned maintenance comes at a time when India is already grappling with supply challenges due to the ongoing Iran war, which has disrupted imports of crude oil, natural gas, and LPG. The shutdown is likely to tighten domestic fuel availability further, adding to concerns over energy security.

Nayara Energy, backed by Russia’s Rosneft, had earlier deferred the maintenance due to external constraints, but will now proceed with the halt. Industry sources indicate that while the company maintains some buffer stocks, the timing of the shutdown amid global supply disruptions could amplify pressure on the market.

With geopolitical tensions affecting key supply routes and limiting inflows from energy-rich regions, India’s fuel supply chain remains vulnerable. Other refiners are expected to adjust operations to help balance supply, but the temporary loss of capacity may still be felt across the domestic market

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.