Govt-run oil and gas firms set to invest employment-oriented Rs 1.62 trillion this year

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State-run oil and gas firms are set to invest Rs 1.62 trillion in FY21 – including capital expenditure (capex) and operational expenditure (opex) — which is expected to generate employment of 240 million man-days. As many as 8,363 oil and gas projects are already work-in-progress, which will incur capital expenditure of Rs 1.2 lakh crore in FY21. […]

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Weak oil refining margins pressure Indian downstream firms; marketing margin stronger – Fitch

Gross refining margins (GRMs) of Indian oil marketing companies will take longer than previously expected to recover, which increases the downside risks to their standalone credit profiles (SCPs), Fitch Ratings said. It said SCPs of Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited faced risks, while headroom for Indian Oil Corporation remains limited. “However, […]

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India’s April 2020 crude processing quantity sees biggest drop in nearly two decades

India’s crude oil processing in April slumped by 28.8 per cent from a year earlier, its biggest drop since at least 2003, as a nationwide lockdown weighed on fuel demand and forced refiners to cut production. Refiners processed about 14.75 million tonnes or 3.60 million barrels per day (bpd) of oil last month, government data showed. The […]

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High debt levels of sugar mills in India to adversely impact credit metrics: CRISIL

The Covid-19 pandemic is expected to exert downward pressure on the credit quality of sugar mills by eroding operating profitability and shoring up debt in fiscal 2021, an analysis of 26 CRISIL-rated sugar companies, which carried debt of over Rs 11,000 crore as on March 31, 2020, shows. According to the rating agency’s report, ‘the […]

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BPCL stake sale may get delayed over falling oil prices, market crash

A steep correction in stock markets, as well as in crude oil prices, may postpone Indian government’s plan to divest it stake in Bharat Petroleum Corporation (BPCL). The BPCL stock, which had seen a high of Rs 549.70 in November 2019 outperforming markets on expectations of value unlocking with the government selling its majority stake and garnering […]

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Indian OMCs rattled by oil volatility, uncertain petroleum demand

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Volatility in crude oil prices and an uncertain petroleum demand over the last fortnight have come as a cause for concern for oil marketing companies (OMCs). “Crude prices had rallied 25 per cent on Thursday after Saudi Arabia called an ‘urgent meeting’ of the OPEC+ alliance and other producers to negotiate an output cut deal. NYMEX front-month crude […]

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Oil marketing companies (OMCs) likely to hike fuel prices for BS-VI compliant gasoline

National oil marketer Indian Oil Corporation (IOC) said it is ready to supply low emission BS-VI fuels from 1 April, 2020 and that there will be a marginal increase in retail prices. The largest oil supplier has spent over Rs 17,000 crore to upgrade its refineries to produce the low-sulphur diesel and petrol, the company’s chairman Sanjiv […]

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India’s fuel blues to get worse

With oil turning costlier relentlessly – Brent crude went past $80 a barrel yesterday, up 3.3 per cent from a week ago and a three-and-half-year high – the cost of Indian basket went to a prohibitive $76 a barrel. Add to that rupee falling sharply against the dollar, and the government refusing point blank on […]

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