Indian Oil nears first Mauritius fuels export deal: Sources

This year because of falling local demand due to Covid-19 and weak margins, the company is attempting to lock in sales of its fuels.

Indian Oil Corp, the country’s top refiner, is close to winning its first contract to export up to 720,000 tonnes of clean products to Mauritius under an annual deal from November, two sources familiar with the matter said.

IOC mostly stays away from participating in term tenders for fuel exports as the refiner sells most of its fuel in the local market, besides supplying its retail outlets in Nepal and Bhutan. (Reuters file photo)

IOC mostly stays away from participating in term tenders for fuel exports as the refiner sells most of its fuel in the local market, besides supplying its retail outlets in Nepal and Bhutan.

This year because of falling local demand due to Covid-19 and weak margins, the company is attempting to lock in sales of its fuels.

IOC this year also won its first contract to supply fuels to Bangladesh.

IOC will deliver 205,000 tonnes of 95 RON gasoline, 235,000 tonnes of 10 ppm gasoil, 175,000 tonnes of jet fuel and up to 105,000 tonne of marine gasoil at Port Louis in Mauritius, sources said.

India’s Mangalore Refinery and Petrochemicals Ltd supplied Mauritius’ full requirement for fuel for 12 years to 2018/19. In 2019/20 refined fuels were supplied by Petrochina and Vitol.

IOC had placed a second lowest premium on gasoline after OQ Trading but the lowest premiums on other fuels to emerge as the frontrunner for the annual tender, the document showed.

IOC has offered to sell fuels at premiums of $50.15 per tonne for gasoline, $3.58 per barrel for gasoil, $3.22 per barrel for jet fuel and $5.91 per barrel for marine gasoil, the document showed.

The tender closed last week.

The sources did not wish to be identified citing confidentiality. IOC and STC did not respond to Reuters emailed requests for comment.