Mangaluru: Mangalore Refinery and Petrochemicals Limited (MRPL) has increased its LPG production by 120 per cent, taking the daily output to 10 lakh kg, following disruptions in the Strait of Hormuz, MRPL Director Nandakumar Pillai said on Wednesday.
Speaking at a maritime seminar on "Sea adversities and the role of stakeholders", organised by the New Mangalore Port Authority (NMPA) in Mangaluru, he said the refinery is currently producing around 45 lakh kg of LPG per day, equivalent to nearly 10 lakh cylinders daily.
Before the conflict in West Asia and the disruption in the Strait of Hormuz, MRPL was producing around 33 lakh kg of LPG per day. Production was increased by nearly 30 per cent in March, he said, adding that the company is also trying to source crude oil from various available suppliers.
Pillai said MRPL handled nearly 23.4 million tonnes of cargo at the New Mangalore Port during the 2025-26 financial year.
During the same period, the refinery received 346 ships at the port. He said the number of ships received and cargo handled during the previous year was also around 346 vessels and 23.4 million tonnes.
Referring to the crisis in the Strait of Hormuz, he said nearly 3,000 ships are currently waiting for clearance, which has led to a sharp rise in crude oil prices.
The crude oil price, which stood at around 69 US dollars per barrel in February, rose to an average of 128 dollars per barrel in March, he said.
Insurance costs for cargo have also gone up sharply from 5 per cent to 15 per cent.
Due to the additional war risk, the insurance premium has increased to nearly Rs 100 crore per cargo consignment, he said, adding that such a high amount is making it difficult for companies to proceed with shipments.
Dakshina Kannada Deputy Commissioner Darshan H. V. said the war situation is creating major challenges for the country, but preparations are being made to avoid any future disruption.
NMPA Vice-Chairperson S. Shanthi said the port handled 50.04 million tonnes of cargo in its golden jubilee financial year.
Among those present at the seminar were retired Mumbai Port Authority Conservator Capt Anand W. Karkare, retired Government of India nautical adviser Capt L. K. Panda, NMPT Surveyor-in-Charge Ubaidul Rahman, and NMPA Deputy Conservator Capt Manoj Joshi.