October 13, 2026: MRPL and Chennai Petroleum face potential pressure on refining margins as record crude tanker freight rates, higher crude premiums and concerns over diesel spreads raise operating cost risks for Indian refiners.

Shares of Mangalore Refinery and Petrochemicals Limited (MRPL) and Chennai Petroleum Corporation Limited (CPCL) are in focus amid a sharp increase in global crude oil transportation costs, with tanker freight rates reaching unprecedented levels as disruptions in international energy markets reshape crude trade flows.

According to data from maritime brokerage Poten & Partners, daily charter rates for Very Large Crude Carriers (VLCCs) operating on the Middle East–Asia route have surged to approximately $1.3 million per day, representing a 43-fold increase since January 2026.

The extraordinary rise in tanker rates has significantly increased the cost of transporting crude oil, creating an additional challenge for refiners already navigating elevated crude premiums and volatility in global petroleum product markets.

Both MRPL and Chennai Petroleum have recently witnessed profit-taking, with market concerns increasingly centred on rising crude procurement expenses and their potential impact on refining profitability.

Crude tanker rates surge 43 times since January
The latest data from Poten & Partners highlights the extent of the disruption in global crude shipping markets.

VLCC freight rates on the Middle East–Asia route have climbed sharply during 2026, with the most significant acceleration occurring in recent weeks.

The cost of transporting crude has also increased substantially relative to the underlying value of the commodity.

At the beginning of January, freight accounted for approximately 3% of the crude oil value in the comparison presented by Poten & Partners. By October, this proportion had climbed to approximately 27%.

(Source: Business Upturn)