Pet Coke: Bharat Petroleum reduces prices across refineries

State-run Bharat Petroleum Corp. Ltd. (NSE: BPCL) has reduced petroleum coke prices at its two pet coke producing refineries with effect from 1 Jul'20.

• At BPCL's Bina refinery in Madhya Pradesh, pet coke price for road supplies is reduced to INR 7,505/t, a decrease of INR 277/t below last month's price of INR 7,782/t.
  
  

• The price for rail supplies is also decreased by INR 277/t to INR 7,555/t as against last month's price of INR 7,832/t.
  
  

• At BPCL's Kochi refinery in Kerala, pet coke price for rail supplies is reduced to INR 5,432/t, a decrease of INR 520/t below last month's price of INR 5,952/t.
  
  

• There are no road supplies of pet coke from BPCL's Kochi refinery.
  
  

Production & Dispatch Statistics of BPCL:

Average production of pet coke at BPCL's Bina refinery is 40 kilotonnes (kt) per month, out of which about 15 kt is consumed in their captive power plant (CPP). Thus, approximately 25 kt of pet coke is sold in the domestic market, mostly to cement manufacturing companies in Madhya Pradesh and Rajasthan.

Pet coke is dispatched either by rail or by road transport from Bina refinery. Rail supplies of pet coke cost INR 50/t more than road supplies.

Pet coke production at BPCL's Kochi refinery averages around 80-85 kt per month, which is mostly supplied to cement manufacturers. It is further understood that apart from the general prices as mentioned above, the company offers customer-specific prices to the major cement companies.

Domestic Pricing Comparison - Jul'20:

Contrary to BPCL's price reduction, Reliance Industries, India's largest pet coke producer, has increased its pet coke price ex-Jamnagar refinery w.e.f. 1 Jul'20 to INR 6,750/t, over its last month's price of INR 5,697/t, an increase of INR 1,053/t.

Nayara Energy, erstwhile Essar Oil, has also increased pet coke price to INR 6,755/t, over its last month's price of INR 5,705/t, an increase of INR 1,050/t.

Mangalore Refinery and Petrochemicals (MRPL) has rolled over pet coke prices for the third consecutive month in a row. As of 1 Jul'20, the company has maintained its pet coke prices for road and rail supplies at INR 6,490/t and INR 6,190/t respectively.

By Aditya Sinha