Monday August 20, 2018
Home Business India’s...

India’s fuel consumption to grow in 18 months

0
//
126
www.forestagency.com
Republish
Reprint

New Delhi, India’s GDP growth and low global crude oil prices will lead to the country to higher fuel consumption over the next 18 months, Moody’s Investors Service said on Monday.

“We expect the Indian economy to grow at a faster pace, with GDP growth for the fiscal year ending March 2016 at 7 percent and 7.5 percent for the following year,” Moody’s said in a report.

The report said improved economic growth coupled with low oil prices will support higher consumption of refined petroleum products in India over the next 18 months.

“Lower crude prices will reduce refiners’ feedstock costs and minimise working capital requirements, which together with healthy earnings, will boost cash flows and allow refiners to reduce borrowings,” the ratings agency said in “Refining and Marketing – Asia Outlook Stable on Modest EBITDA Growth, Easing Supply Overhang”.

It said state-run Indian Oil Corp (IOC) and Bharat Petroleum Corp (BPCL) have reduced their debt levels over the past 12 months.

Moody’s estimated that 300,000 barrels per day of new capacity from IOC’s Paradip refinery and 112,000 bpd from expansion of Bharat Petroleum’s Kochi refinery will come online through 2016.

“We anticipate the current wave of capacity additions will reduce refiners’ production costs and boost refining complexity. This capacity to produce more higher-value distillates per barrel of crude oil will also amplify supply pressure,” it said.

Moody’s also expects the region’s improved supply-demand balance would encourage regional refiners to keep refinery utilisation rates stable over the next 18 months amidst increasing capacity.

(IANS)

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

Petrol Prices On The Reverse Trend For The Last 13 Days: Prices Fall

Both in Delhi and Kolkata, diesel prices in the fortnight have declined

0
Petrol Prices On The Reverse Trend For The Last 13 Days: Prices Falls
Petrol Prices On The Reverse Trend For The Last 13 Days: Prices Falls, flickr

Domestic petrol prices, which had hit record levels for 16 consecutive days in May, have been on the reverse trend for the last 13 days, including Monday, but the relief for consumers has been slow in coming.

The pace of decline has been less than half the rate of surge.

Percentage-wise, since May 30, when prices started to take a downturn, petrol prices have slipped 2.35 per cent in Delhi, compared to the 5.5 per cent in the previous 16 days.

In absolute terms, prices have gone down by Rs 1.85 a litre since May 30, compared to the increase of Rs 3.8 per litre in the during May 14-29. On Monday, fuel was sold at Rs 76.58 per litre in the national capital, down 20 paise from Sunday’s level, the IndianOil Corp’s website showed.

In Mumbai, where petrol prices were the highest in the country last month, the decline has been much slow at Rs 1.23 per litre so far, against the rise of Rs 3.76 a litre during May 14-29.

On Monday, petrol price in Mumbai was Rs 84.41 per litre against Rs 84.61 on Sunday. Similarly, in Kolkata and Chennai, the fuel was sold at Rs 79.25 and Rs 79.48 respectively.

In Kolkata and Chennai too, the decline has been Rs 1.81 and Rs 1.65 per litre in the last 13 days, around 50 per cent of the previous rate of increase.

In tandem with petrol prices, diesel too has seen a decline, but of only around 2 per cent in all the major cities including Delhi, compared to over 5 per cent rise in the previous fortnight.

Petrol station
Petrol station, flickr

Both in Delhi and Kolkata, diesel prices in the last 13 days have declined by Rs 1.36, and in Mumbai and Kolkata, the fall was of Rs 1.44 and Rs 1.45 per litre respectively.

Also read: Petrol price slashes by 32 paise and diesel price by 85 paise

On Monday, prices of the fuel in Delhi, Kolkata, Mumbai and Chennai were at Rs 67.95, Rs 70.50, Rs 72.35 and Rs 71.73 per litre, respectively. (IANS)

Next Story