Indian naphtha premiums surge as Gulf, Russian supply tightens, sources say

Bharat Petroleum

13/07/2026 06:11

By Mohi Narayan
NEW DELHI, July 13 (Reuters) - Spot premiums for Indian naphtha exports have rebounded to levels last seen in late March, as tight supplies from the Middle East and Russia and renewed concerns over U.S.-Iran tensions boosted demand from Far East buyers.
Indian state refiners Bharat Petroleum Corp BPCL.NS and Hindustan Petroleum Corp HPCL.NS sold about 63,000-65,000 tons (567,000- 585,000 barrels) of naphtha, used as a feedstock for making petrochemicals like plastics and pharmaceuticals, through tenders last week at premiums similar to late-March highs, multiple trade sources said on Monday.
BPCL sold 36,000-37,000 tons of naphtha at a premium of about $100 per ton to Middle East quotes on a free-on-board (FOB) basis for loading during July 30 and 31, two trade sources said.
HPCL sold about 27,000-28,000 tons of the light distillate at a premium of about $68 per ton to Middle East quotes on an FOB basis for loading during July 25 to 27, two separate sources said.
 Premiums have jumped from just above $40 a ton the previous week.
Tight supplies from the Middle East and Russia have boosted demand for Indian naphtha from buyers in the Far East, a Mumbai-based trader said.
Oil companies typically do not comment on trades.

(Reporting by Mohi Narayan; Editing by Harikrishnan Nair)
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