India’s largest refiner, the Indian Oil Corp, is about to win its first contract for the export to Mauritius, under a November annual agreement, of up to 720,000 tons of clean goods, two well-known sources said.
The wealth is more than just high revenues of Indian oil corporations (Rs 5,66,950 in 2019-20). The Energy of India accounts for almost half the market share of Indian oil products and 81.74 million metric tons (MMT) of sales are produced in 2019-20.
In particular, the refinery sells most of its fuel on the local market, as it supplies its retail outlets in Nepal and Bhutan, and is mainly away from participating in term offers for exports of fuel.
This year, the company tries to block the sales of its fuels due to the fall in local requirements due to COVID-19 and its weak margins.
IOC secured its first deal this year to supply Bangladesh with fuels as well.
Sources suggested that IOC would supply 205,000 tons of 95 RON gasoline, 235 thousand tons of 10 ppm of gasoline, 175,000 tons of jet fuel in Port Louis in Mauritius, and up to 105, 000 tons of marine gas oil.
The trading arm of France’s Total, Sahara Energy Resources Ltd, OQ Trading, and Vitol, according to a document from Reuters, were other companies that ran for the offer given by the State Trading Corporations of Mauritius.
The fuel requirement for the entire Mauritius area has been supplied for 12 years up until 2018/18 by the Indian Refinery and Petrochemicals Ltd. Petrochina and Vitol produced refined fuels in 2019-20.
Following OQ Trading, the second-lowest price of petrol was set by IOC, however, the document revealed that the lowest prices for other fuels were the forefront of the annual tender.
The document indicated that IOC had offered to sell fuel for a premium of 50.15 dollars per tonne, 3.58 dollars per barrel, 3.22 dollars per barrel, and 5.91 dollars per barrel for sea-based fuel, respectively. Last week, the tender closed.
Confidentiality was not identified in the sources. The Reuters email requests for comment had not been replied to by IOC and STC.