Fuel pricing reforms bolster Indian refiners

摘要

The Indian government’s gradual liberalisation of fuel pricing is supporting state-run refiners’ margins, but upstream producers are still carrying the burden of Delhi’s inability to cut subsidies altogether. Refining margins at India’s three main state-run refiners — IOC, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) — bounced back in April-June, the first quarter of the 2013-14 fiscal year. Margins at IOC, the country’s largest refiner by capacity with 1.4mn b/d, turned positive after it gained greater freedom to adjust prices for diesel, the main fuel for the transport and agricultural sectors. Delhi allows state-run refiners to lift diesel prices by 1pc/month, following on from gasoline pricing liberalisation (WPA, 18 January, p7).