Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) dropped 2.64% to ₹139.01 in Friday’s morning trade, down from the previous close of ₹142.78. The fall comes amid heightened geopolitical risk following Israel’s preemptive strike on Iranian military and nuclear targets, which triggered a global rally in crude oil prices.
The spike in oil prices—Brent crossing $77 per barrel and WTI nearing $76—has increased the cost pressure on Indian refiners like MRPL. As an oil refining and marketing company, MRPL’s margins are sensitive to fluctuations in global crude benchmarks and forex volatility.
With the Strait of Hormuz—a key chokepoint for nearly 20% of global oil supply—under potential threat, traders are factoring in further risk premium in crude contracts, leading to weakness in downstream energy stocks across emerging markets, including India.
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