Reliance powers through oil volatility with agile strategy

Business Desk

MUMBAI

India’s largest private refiner, Reliance Industries Limited, deployed diversified crude sourcing and operational agility to navigate a volatile energy market in the March quarter of FY26, PTI reported on Sunday.

 The company said it replaced Persian Gulf crude contracts with supplies from alternative geographies to avoid refinery run cuts. It also worked with Middle East suppliers to reroute stranded crude, ensuring uninterrupted feedstock availability for its Jamnagar refining complex.

 Global oil markets remained oversupplied through most of FY26, though sanctions on Russian oil tightened before easing later. Strong demand growth and limited refining capacity drove higher fuel cracks, while downstream chemicals faced pressure due to oversupply. Reliance prioritised domestic supply by diverting products to local markets and optimising logistics through cargo aggregation and flexible service mix.  However, rising crude premiums, freight and insurance costs, along with the reintroduction of the Special Additional Excise Duty, weighed on margins. 

 To mitigate the impact, the company adjusted its fuel mix, boosted LPG output by diverting propane and butane streams, and optimised power sourcing. It also allocated KG-D6 gas to priority sectors. Looking ahead, Reliance expects continued volatility in global energy markets due to geopolitical risks and policy uncertainties, while its diversified sourcing and high-complexity refining operations are expected to support performance. 

The company’s integrated refining and petrochemical operations also provided flexibility to optimise product slates in response to shifting market dynamics. Reliance leveraged its scale and complex configuration to maximise margins across value chains, even amid cost pressures. 

  Its ability to process a wide range of crude grades enabled efficient substitution during supply disruptions. Analysts noted that such operational resilience positions the company favourably against global peers. Continued investments in logistics optimisation, energy efficiency and digital monitoring systems are expected to further enhance performance.