Port of Mundra, India's major bunkering port, is expected to see a jump in bunker volume in 2008, said a senior executive at Adani Bunkering Services, which supplies bunkers at the port.
The volume is expected to almost double to 50,000 tonnes a month by March 2008, from 25,000 to 30,000 tonnes a month now, according to Chandan Samaiyar, head of bunkering of Adani Bunkering Services.
It would be the result of the delivery of a barge to the port. The delivery of another barge in December 2008 would bring the volume to 100,000 tonnes a month, said Mr Samaiyar.
India has a total bunker sales volume of 40,000-45,000 tonnes a month, lagging behind the country's rapidly growing trade volume.
Industry officials said bunker prices in India were much higher than Singapore. "Ships buy very little bunker in India, because the price is way too expensive," said Kenneth Cheung, chief representative of OW Bunker's Shanghai office. Mr Cheung said the premium in India to Singapore could at least be US$50-60 per tonne.
But Mr Samaiyar of Adani said the port of Mundra was offering very competitive bunker price. "The price in Mundra is only US$8-10 per tonne higher than Singapore," he said, adding that because of the special economic zone where Mundra is located there is no taxation on imported fuel oil.
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