Jamnagar GRMs go up by a dollar

Vol 19, PW 10 (28 Jan 16) News in Brief

Reliance’s 1.24m b/d twin refinery complex at Jamnagar in Gujarat has once again increased its gross refining margins (GRMs) by nearly a dollar.

Reliance registered an impressive GRM of $11.5/barrel over October-December 2015 compared to $10.6/barrel for July-September 2015. “This is a seven year high,” says a Reliance source.

“Compare it to $7.3/barrel in the same three month period last year.” GRMs went up because of strong demand for ‘light distillates’ petrol and naphtha.

During the middle of the quarter, there was also good demand for ‘middle distillates’ kerosene and diesel. Further raw material costs fell 39.5% to Rs37,638cr ($5.7bn) from Rs62,196cr ($9bn) last year.

“This was because of a sharp decline in oil prices,” we hear. Brent crude prices averaged $43.7/barrel in October-December 2015-16 compared to $76.3/barrel in the same period last year.

Jamnagar also achieved an all-time high crude throughput with 18m tonnes processed at an average utilisation of 116%.