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Reliance expands fuel exports to Africa, Europe

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In short

Driven by strong international fuel demand and rising crack spreads, the refiner boosted its market presence across Mediterranean and African hubs. Shipments included premium gasoline, diesel, and inaugural deliveries of low-sulphur jet fuel to South Africa. At the same time, the company adjusted domestic operations by nearly doubling normal LPG production to navigate local pricing constraints and excise duties.

Key points

  • The company is deploying over 20 vessels and targeting a 25-ship fleet to handle elevated…: The company is deploying over 20 vessels and targeting a 25-ship fleet to handle elevated shipping and freight expenses.
  • Crude sourcing was diversified across the Americas and the Gulf to sustain record process…: Crude sourcing was diversified across the Americas and the Gulf to sustain record processing rates amid international market disruptions.
  • Global fuel availability is expected to stay constrained because of ongoing refinery outa…: Global fuel availability is expected to stay constrained because of ongoing refinery outages, Russian export restrictions, and low inventories.

Sources checked by our analysis pipeline: 1

This helped the private refiner boost its market share in these markets by about 50%, showed the company’s September quarter financial presentation. RIL also tapped opportunities in Australia, Kenya and Tanzania for premium gasoline grades, while enhancing diesel and aviation turbine fuel (ATF) supplies to the Mediterranean.

RIL’s oil-to-chemicals (O2C) business emerged as the biggest driver of its fiscal second quarter earnings, reporting a 68% surge in Ebitda to a record Rs 25,203 crore. O2C revenue grew 44% to Rs 231,601 crore, led by high energy prices.

The West Asia conflict has disrupted energy supply chains, resulting in a 41% year-on-year rise in crude oil prices and a 50- 78% jump in transportation fuel prices.

RIL said it also supplied lowsulphur ATF to South Africa for the first time, opening up potential new export opportunities. The company’s export strategy comes amid a sharp rise in global refining margins as geopolitical disruptions, refinery outages and declining fuel inventories tighten product supplies.

Change in sources too

Refining capacity in Russia and West Asia has been affected due to ongoing conflicts, lifting prices…

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