Archive · 28 Jul 2025
CPCL Explores Plant Expansion, Eyes Retail Fuel Market Entry
CPCL, a company that refines oil, wants to make its plant in Chennai bigger.
They are currently using the plant at its full capacity.
They're looking into increasing the amount of oil they can process.
The company is also working on a new refinery project, changing some of the plans, and working on building gas stations to sell fuel.
CPCL had a small loss this past quarter.
However, the company made more money refining each barrel of oil than it did the year before.
They hope to have a better quarter in the near future because the prices have stabilized.
Chennai Petroleum Corporation Ltd (CPCL) plans to expand its Manali plant capacity from 10.5 million tonnes to 14 million tonnes.
The company is conducting feasibility studies, with results expected in a couple of months.
CPCL is revising the cost of its Nagapattinam refinery project, a joint venture with Indian Oil Corporation.
CPCL is entering retail fuel marketing within Tamil Nadu to reduce losses from Central Sales Tax under-recoveries.
The company reported a net loss of ₹40 crore in Q1 FY25, despite improved operating profitability.
- Who
- Chennai Petroleum Corporation Ltd (CPCL), a standalone refiner part of Indian Oil Corporation.
- What
- CPCL is exploring capacity expansion of its Manali plant and entering retail fuel marketing.
- When
- The feasibility study for expansion was launched last month, and CPCL reported Q1 FY25 financial results.
- Where
- Manali, North Chennai, Tamil Nadu.
- Why
- To sustain high capacity utilization, reduce losses, and mitigate risks associated with crude oil price fluctuations.
- Current Capacity
- 10.5 million tonnes
- Target Capacity
- 14 million tonnes
- Q1 FY25 Capacity Utilisation
- 114%
- Q1 FY25 Net Loss
- ₹40 crore
- Nagapattinam Refinery Project Cost
- ₹36,400 crore
- IOC Stake in Nagapattinam project
- 75%