India's Chennai refinery cuts crude runs 25% on pollution concerns

Quantum Commodity Intelligence – India's Chennai Petroleum Corp has reduced crude runs at its 200,000 barrel per day Manali refinery in southern India by around 25% due to pollution concerns.

The move follows an order by the Tamil Nadu state pollution control board, after complaints of liquefied petroleum gas-like odour from residents living around the refinery, according to reports carried by Indian media outlets.

The company confirmed production at the plant, which supplies the domestic market, had cut output on a "temporary basis" but was confident of resolving the issue at the earliest.

Chennai Petroleum is a subsidiary of the country's largest state refiner, Indian Oil Corp.

The Tamil Nadu Petroleum Dealers Association said the run cuts could lead to a shortfall in the availability of fuel at retail outlets.

"The impact is yet to be felt since all oil companies have a few days of backup. But oil companies must ensure that consumers are not affected in any way due to this development," Association State president K.P. Murali told The Hindu.

In addition to mainstream products such as diesel, gasoline and LPG, local dealers also expressed concerns over naphtha, furnace oil, bitumen, lubricants and wax shortages.