Nayara Maintenance Shutdown Sparks Concerns, But India Assured of Stable Fuel Supply

India’s fuel supply outlook has come under scrutiny after Nayara Energy announced a planned 35-day shutdown of its refinery for routine maintenance. The refinery, one of the country’s largest private facilities, contributes significantly to India’s overall refining capacity, and reports suggested that the temporary halt could impact nearly 8% of national refining output.

However, the company has firmly dismissed concerns about any disruption in fuel availability. In an official statement, Nayara clarified that the shutdown is a scheduled maintenance turnaround and not an operational crisis. It assured that there will be no closure of fuel pumps and that its extensive network of over 7,000 retail outlets will continue to function normally.

The company further stated that it has adequate fuel reserves to cover demand for over 40 days, ensuring uninterrupted supply across the country during the maintenance period. It emphasised that the turnaround has been carefully planned to avoid any shortages.

Nayara Energy plays a key role in India’s domestic fuel market, supplying a large portion of its output within the country. A share of its production is also sold to state-run oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, which distribute fuel across wider regions.

The company has faced international scrutiny in recent times, particularly from the European Union, which imposed sanctions related to exports of refined petroleum products derived from Russian crude. Nayara has criticised these measures, calling them unjustified and inconsistent with international practices.

Meanwhile, India has increased its imports of discounted Russian crude oil in recent years, becoming one of the largest buyers globally following the geopolitical shifts after 2022. Temporary relaxations by the United States have also allowed Indian refiners to continue accessing shipments amid evolving global restrictions.

Amid rising global crude prices, Nayara recently increased petrol prices by ₹5 per litre and diesel by ₹3 per litre, partially passing on higher input costs to consumers.

In response to the broader energy situation, the Indian government has reduced excise duties on petrol and diesel to ease pressure on consumers and oil companies. Officials have also reiterated that India currently maintains around 60 days of fuel reserves, dismissing reports of shortages as misleading.

State-run oil companies, including IOC, BPCL, and HPCL, have also confirmed that their retail outlets are operating without any disruption, reinforcing assurances that the country’s fuel supply remains stable despite the temporary refinery shutdown.