Essar Oil plans to supply motor spirit (MS) and HSD to states in western and northern India from its Vadinar refinery in Gujarat, which will be fully commissioned by September this year.

"Essar Oil refinery in Jamnagar will reach its full capacity of 12.5 million tonnes by mid-September this year, which will help us meet the fuel requirements of our retail outlets in the northern and the western states," said Essar Oil marketing head S Thangapandian. Once Jamnagar refinery is commissioned, the company would upgrade its motor spirit and HSD to Euro-II and Euro-III grades, said Thangapandian.

Currently, Essar is running its Jamnagar refinery at 7.5 million tonnes capacity, which will be upgraded to 12.5 million tonnes once two secondary units a fluid catalytic cracker with 3.3 million tonnes capacity and a diesel hydrosulfuriser with 3.7 million tonnes capacity are commissioned by early September.

Essar Oil plans to transport fuel for retail outlets through the Railways to reach places as far as Rewadi in Haryana. Thangapandian said the fuel requirement of outlets in the eastern and the southern states will be outsourced from the current suppliers. The company depends on MRPL, Numaligarh and other IOCL refineries for eastern and southern outlets.

Essar Oil has 1,210 outlets in the country and another 800 are at various stages of construction.

Thangapandian added, "If a level-playing field is provided by the government, Essar Oil can put these 800 retail outlets onstream in flat 30 days' time." Currently, Essar Oil's Vadinar refinery supplies 20,000 tonnes of MS and 40,000 tonnes of diesel for outlets in Gujarat, Maharashtra, Madhya Pradesh and Rajasthan. The refinery also exports HSD.