MRPL Shares Jump 6.5%; But What's Driving the Rally?
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MRPL share price has emerged as one of the top performing stocks on Friday, it has rallied after a Russian oil tanker, originally bound for China, was diverted to India and chartered by MRPL.
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Mangalore Refinery and Petrochemicals (MRPL) share price rose 6.5 per cent on Friday, with the stock trading at Rs 199.5 as of 11 AM. The price is trading near its 52-week high of Rs 212.31. The bounce back in share price came because of news that a Russian oil tanker, originally bound for China, has been diverted to India and chartered by MRPL, a move that sits within a much larger shift in how India is managing its energy supply.
Why MRPL Share Price Surged on Friday?
The vessel, Aqua Titan, which was carrying Russian Urals crude and had initially signalled China as its destination. It altered course in Southeast Asian waters and is now expected to arrive at New Mangalore Port on March 21. According to reports, Rakesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways, confirmed on Thursday that the ship is carrying crude oil and is headed to India. His statement came a day after officials had said they had no information about any such diversion. This was a clarification that helped settle some of the uncertainty around the news.
MRPL chartered the vessel, making the Mangalore-based refiner a direct beneficiary of the cargo.
India Stepping Up Russian Oil Purchases
The diversion of Aqua Titan is not a rare occurrence. India's crude oil imports from Russia have surged in recent weeks, with imports averaging 1.5 million barrels per day (bpd) in March, marking a 41 per cent rise compared to January and a 45 per cent increase from February levels, according to data analytics firm Vortexa.
The surge in prices was followed by a 30-day waiver issued by US President Donald Trump after Middle East tensions escalated in late February, giving Indian refiners a clear window to resume purchases from Russia.
A Broader Shift in Energy Sourcing
What gives this development more weight is the wider policy context it sits in. Indian officials have indicated that nearly 70 per cent of the country's crude imports are now coming from regions outside the Gulf, which is a notable shift from the country's historically heavy dependence on West Asian suppliers.
This diversification is not limited to crude oil. On the LPG and LNG side, India is actively broadening its sourcing beyond Qatar to include suppliers such as the United States and Australia. The reason is straightforward: to reduce exposure to the Strait of Hormuz.
About MRPL
Mangalore Refinery and Petrochemicals Limited (MRPL) is a public sector company primarily engaged in crude oil refining and petrochemicals. With a market capitalisation of Rs 33,826.91 crore, the stock is currently trading at Rs 199.5 as of 11 a.m and has delivered 25.93 per cent returns year-to-date. Its ROCE stands at 4.38 per cent and ROE at 0.45 per cent, indicating the company is still working toward stronger profitability metrics.
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Add NowDisclaimer: The article is for informational purposes only and not investment advice.