City
Epaper

Indian refineries' profitability dependent on cost recovery

By IANS | Updated: February 19, 2022 13:05 IST

New Delhi, Feb 19 Indian refineries' profitability is dependent on cost recovery via an increase in the retail ...

Open in App

New Delhi, Feb 19 Indian refineries' profitability is dependent on cost recovery via an increase in the retail prices, said India Ratings and Research (Ind-Ra).

Notably, oil marketing companies have not increased retail prices of petrol and diesel since November 2021.

However, the trend might change as high Crude oil prices have kept prices of key refinery-based products elevated in Q4FY22.

At present, the Brent-indexed Crude oil is priced over $91 per barrel.

Besides, Ind-Ra cited that rise in gross refining margins (GRMs) of Indian refiners in Q3FY22 came on the back of an increase in the "crack spreads" of key products as well as higher inventory gains.

Consequently, the Q3FY22 GRMs for Indian refining companies averaged at $9.4 per barrel Ain line with Singapore GRMs.

Furthermore, the agency attributed the trend to the demand pickup seen globally on account of the restoration of transport activities, gas switching to oil due to high LNG prices, relaxation of air travel restrictions and a higher winter season heating demand.

"Domestic consumption of petroleum products increased to 18.4 million tonnes in December 2021 from 15.9 million tonnes during September 2021, almost reaching the pre-covid level of 18.8 million tonnes in December 2019," the agency said.

"The refinery throughput also increased in response to the increase in demand to 4.72 million bbl per day during 9MFY22 from 4.27 million bbl per day during 9MFY21."

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tags: singaporeNew DelhiIndia Ratings And ResearchThe new delhi municipal councilDelhi south-west
Open in App

Related Stories

EntertainmentAjith Kumar Injured in Fan Frenzy After Padma Bhushan Award Ceremony, Actor Hospitalized In Chennai

MaharashtraOver 10,000 Pakistani Nationals Traced in Maharashtra and Delhi Post-Palgham Terror Attack

EntertainmentPawan Kalyan's 8-Year-Old Son Hospitalized in Singapore for Respiratory Issues Following Fire Accident

MumbaiMumbai International Airport Sees 19% Increase in Air Traffic Towards Southeast Asia After Visa Policy Relaxation

NationalNew Delhi Railway Station Sees ‘Stampede-Like’ Chaos Due to Train Delays (Watch)

International Realted Stories

InternationalDefeating Hamas is Israel's primary objective: Israeli PM

InternationalUNSC President says meeting on India-Pakistan tensions possible

InternationalUniversities under watch for violating SC orders, says White House Deputy Chief of Staff

InternationalOne killed, 3 injured as vehicle overturns in Golan

InternationalIsrael warns of harsh responses if attacks on Druze community continue in Syria