What caused the sharp surge in India's naphtha premium in mid-July 2025?

The sharp surge was directly driven by a dual supply squeeze: renewed disruption of transit through the Strait of Hormuz hindering Middle Eastern naphtha exports, and sustained sanctions reducing Russian naphtha exports to Asia — which fell to 700,000–800,000 tonnes per month, down ~30% from the 1–1.2 million tonnes monthly average in the first 10 months of 2025.

How did Indian state refiners BPCL and HPCL price their recent naphtha cargoes, and how does that compare to the previous week?

BPCL sold 36,000–37,000 tonnes of naphtha loading on July 30–31 at a premium of ~$100/tonne, while HPCL sold 27,000–28,000 tonnes loading on July 25–27 at ~$68/tonne; this marks a substantial increase from the prior week’s premium of just slightly above $40/tonne.

India Naphtha Premium Surges Significantly

Jul 20, 2026

India naphtha spot premiums hit multi-month highs due to Middle East and Russian supply tightness linked to geopolitical tensions. Refiners BPCL and HPCL secured significantly higher bids, raising cost pressures for Asian petrochemical producers.

ccin

2026-07-20

India Naphtha Premium Surges Significantly

India Naphtha Premium Surges Significantly

FAQ