Deadly Blast Hits Major Indian Refinery as Fuel Markets Tighten

A major explosion and fire have hit one of India’s largest refineries just as the country is pushing its plants above normal operating rates to offset tight fuel supplies caused by the Iran war.One worker was killed, and at least eight others were injured Wednesday after a high-pressure Cold Separator ruptured in the Coker Hydrotreater Unit at Mangalore Refinery and Petrochemicals Ltd.’s 15-million-tonne-per-year refinery in Mangaluru, according to MRPL and local authorities. The explosion occurred around noon local time and triggered a fire that took roughly two and a half hours to extinguish. MRPL said it immediately isolated the affected unit and deployed its emergency response and firefighting teams. The company has not yet disclosed how long the Coker Hydrotreater Unit will remain offline or whether the accident will reduce overall refinery throughput.The blast was powerful enough to be heard more than 10 kilometers away, with local reports describing broken windows and damage to buildings around the refinery.Any prolonged disruption would come at a difficult time for India’s fuel market. MRPL had planned to operate its Mangaluru refinery above 100% of capacity through March 2027 as refiners respond to tight diesel supplies and high margins following the disruption of Middle Eastern energy flows.The state-controlled refiner has already been forced to adjust its operations this year. MRPL declared force majeure on gasoline exports earlier in 2026 as the Iran conflict disrupted crude supplies and shipping through the Strait of Hormuz.The Coker Hydrotreater Unit is part of MRPL’s Phase 3 complex and treats products from the refinery’s coking operations to remove sulfur and other contaminants. The extent of damage to the unit has not yet been disclosed.MRPL is a subsidiary of state-owned Oil and Natural Gas Corporation and operates the Mangaluru complex on India’s southwest coast. The refinery has 15 million tonnes per year of crude-processing capacity and produces diesel, gasoline, jet fuel and other petroleum products for domestic and export markets.The immediate market impact will depend on whether MRPL can maintain refinery runs while the damaged hydrotreater is inspected and repaired. The company had not announced a broader refinery shutdown as of Wednesday evening.By Charles Kennedy for Oilprice.comMore Top Reads From Oilprice.comForeign Investors Pull $3.2 Billion From Indian Markets as Oil Rally ReturnsChina’s Thermal Coal Prices Surge to Three-Year HighAnalysts Cut China's Q4 Crude Import Forecasts by 400,000 Bpd