Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

India’s rising oil demand to support investments in refineries, upstream production: Moody’s.


Date: 13-05-2019
Subject: India’s rising oil demand to support investments in refineries, upstream production: Moody’s
India’s rising oil consumption will support its investments in refining capacity additions and upstream production, but imports will keep growing amid stagnant production, Moody’s Investors Service said Monday. The country’s dependence on imported crude oil to meet its needs has risen to 83.7 per cent in 2018-19 fiscal year from 82.9 per cent in 2017-18. Import dependence was 80.6 per cent in 2015-16. In a report on regulatory and security policies in emerging markets, Moody’s said all petroleum products in India are now sold at prices linked to international or regional market rates, which has opened up the fuel retail market. But national oil companies – Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) continue to enjoy over 90 per cent market share in petroleum product distribution, it said.

The three oil refining and marketing national oil companies (NOCs) control 57,944 petrol pumps out of a total of 64,624 petrol pumps in the country. India consumed 211.6 million tonnes of petroleum products in 2018-19, up from 206.2 million tonnes in the previous year. Fuel consumption was 184.7 million tonnes in 2015-16. Though the country is short in producing crude oil, which is turned into fuel at refineries, it manufactures surplus petroleum products. In 2018-19, production of petroleum products was 262.4 million tonnes. Also, two upstream national oil companies, Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) produce about 70 per cent of India’s oil and 80 per cent of its natural gas.

The government continues to set the selling price of natural gas in the country. This is, however, linked to international benchmarks, it said adding that oil and gas companies in India are largely exposed to the same level of price volatility risks as most international oil companies. “India’s oil and gas consumption will support its investments in refining capacity and upstream production, but crude imports will keep growing amid stagnant production, and government pressure for shareholder returns will temper NOC credit quality,” Moody’s said. The government demands high shareholder returns from the government-owned companies in the form of dividends and share buybacks.

In addition, because of the high rate of growth in consumption, the oil companies also need to continue to invest in expanding capacity. “Refining margins in the region in 2019 and 2020 are likely to be lower than 2017 and 2018, which will result in lower earnings, particularly for refiners and integrated oil companies,” the report said. IOC’s nine refineries had a weighted average refining margin of USD 5.83 per barrel in 2018-19. BPCL and HPCL had a gross refining margin of USD 5.25 and USD 5.17 per barrel, respectively, in the same period.

Moody’s said the carbon transition risk for Indian oil companies remains manageable. “Even though the government is encouraging faster adoption and manufacturing of electric vehicles, the response has not been great because of a lack of high-quality, affordable vehicles and the evolving charging infrastructure,” it said.

Source: financialexpress.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 28-02-2025
Notification No. 12/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 14-02-2025
Notification No. 10/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 13-02-2025
Notification No. 14/2025-Customs
Seeks to amend Notification 11/2021-Customs dated 01.02.2021 to amend AIDC rate on Bourbon whiskey

Date: 11-02-2025
NOTIFICATION No. 09/2025–Central Tax
Seeks to bring rules 2, 8, 24, 27, 32, 37, 38 of the CGST (Amendment) Rules, 2024 in to force

Date: 03-02-2025
[F. No. CBIC-190354/236/2021-TRU]
Corrigendum to Notification No. 50 of 2024 Customs, dated the 30th December, 2024.

Date: 01-02-2025
Notification No. 13/2025-Customs
Seeks to further amend notification No. 153/94-Customs dated the 13 th July, 1994.

Date: 01-02-2025
Notification No. 12/2025-Customs
Seeks to further amend notification No. 19/2019 dated 06 th July 2019.

Date: 01-02-2025
Notification No. 11/2025 – Customs
Seeks to further amend notification No. 25/2002-Customs, dated the 1st March, 2002 so as to add capital goods to the already existing list of capital goods exempted from basic customs duty for manufacture of lithium-ion battery of mobile phones and electrically operated vehicles.

Date: 01-02-2025
Notification No. 09/2025-Customs
Seeks to further amend notification No. 16/2017-Customs, dated the 20 th April, 2017 so to exempt certain drugs for supply under Patient Assistance Programme run by specified pharmaceutical companies.

Date: 01-02-2025
Notification No. 07/2025-Customs
Seeks to further amend notification No. 11/2018-Customs dated 02 th February, 2018 so as to exempt specified goods from the whole of levy of Social Welfare Surcharge.



Exim Guru Copyright © 1999-2025 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001