Reports suggest that private sector oil refining firms like Essar Oil have reduced export of diesel recently in order to cater to the rising demand in the domestic market. Diesel is used in the industrial, agricultural and transport sectors in the country.
For example, Essar Oil has reportedly offered only one diesel cargo for January loading, after selling three cargoes for December. The company is yet to offer a cargo for February.
According to industry sources, the Asian gasoil margins have stayed above $19 a barrel since November 2012. They could rise from the second quarter as maintenance season begins, traders are quoted as saying in a leading news agency.
Reliance Industries has scheduled its maintenance of a crude distillation unit (CDU) at a time when diesel demand is picking up slightly, which could curb supply and boost margins, reports indicate.
RIL plans to prepon its maintenance at a CDU of its 580,000 barrels-per-day (bpd) Jamnagar refinery by about a week to February 6 or 7.
Earlier, the firm postponed the maintenance to around February 15 from the initially planned schedule of January 2013, reports indicate. It is learnt that the CDU at the export-oriented newer complex will shut for a maximum of 25 days.
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