India’s Oil Import Bill to Balloon as Iran Syrian crisis exert pressure prices

Sarkaritel
By Sarkaritel May 23, 2018 07:57

India’s Oil Import Bill to Balloon as Iran Syrian crisis exert pressure prices


IOCL Chairman says alternate plans are being worked out to meet short supply

By TN Ashok

New Delhi, May 22 : India’s largest refining and oil company IOCL today  indicated that fuel  prices could go up further as it was difficult to predict how the crude oil supplies from Iran could shrink and impact India’s oil economy, IOCL Chairman and Managing Director Sanjiv Singh said today.

Disclosing the audited financial results of the company for FY 2017-18 as its profits had soared to Rs 2,240 crore , Sanjiv Singh said the short supply of about 6 to 7 million tonnes from iran , which is what India imports from the country, could definitely impact supply demand chain and prices. “We have not yet received any clear cut directive  from the government on the Iran situation , we are working out alternate mechanism for making up the shortfall”, he said even as the petroleum minister dharmendra pradhan had convened a meeting of all CEOs of national oil companies to discuss the supply demand situation and impact on prices.

India’s oil import bill is expected to jump by a quarter to US$ 87.7 billion in the current fiscal year as of FY 2017-18, due to the surge in international crude prices. For FY 2017-18 imports are pegged at 219.15 MT fr US$ 87.725 billion( over Rs 5.65 lakh crore) , latest data from the oil and gas ministrys Petroleum Planning Analysis Cell (PPAC) reveals.

India imported 213.93 million tonnes (MT) of crude oil 2016-17 for US $70.196 billion or Rs 4.7 lakh crore. India relies more than 80 per cent on imports to meet its oil needs

Given the global oil scenario of the Syrian conflict and the Venezuelan  oil  production crisis and OPEC  cutback on production of `1.2 million barrels a day, global oil supplies have dwindled drastically pushing up oil prices to a 2013 level when it soared to over 100 USD a barrel. Singh said that if the Iran situation had not erupted then the oil prices would not have soared. In any cases retail prices of fuel ( petrol and diesel) are mainly driven by international  prices of POL ( petroleum products such as petroleum , oil and lubricants). The current geo political situation ( (Syria +iran+opec+Venezuela ) will determine the future oil prices.

The IOCL  Chairman also indicated that the company would desire that all petroleum products are brought under the GST regime so that a uniform pricing is maintained for petroleum products. For instance in Maharashtra prices of fuels spurted to Rs 80 a litre while it was arund Rs 75 a litre elsewhere because Maharashtra gambled on low fuel prices and raised the excise duties which pushed up prices as global crude oil and POL prices suddenly soared.

Indian oil posted a net profit of Rs 21,346 crore for FY 2017-18 against Rs 19,106 crore in the last fiscal. The reported revenue from operations for the FY 2017-18 was Rs 5,06,428 crore as compared to Rs 4.45,442 crore in 2016-17. “IOCL revenues have never crossed the Rs 5,000 crore mark ( USD 7.79 billion) .

Indian oils reported revenue from operations was Rs 1,36,733 crore in Q4 (jan  march ) FY 2017-18 compared to Rs 1,30,865 crore and Rs 1,22,322 crore in the previous quarter of 2017-18 and corresponding quarter of 23016-17 respectively. “Profit for the last quarter of 2017-18 is Rs 5,218 crore compared to Rs 7,883 crore and Rs 3,721 crore in the previous quarter of 2017-18 and corresoding quarter of 20216-17 respectively.

The board of directors have recommended a fnal dividend of 20% (rs 2 per share) . This is in addition to pre bonus interim dividend of 190% (Rs 19 per share) paid during tyhe year).

Indian oil sold 88.763 MMT of roducts, including exports , during FY 2017-18. Refining throughput for FY 2017-18 was 69.001 MMT and throughput of the corporations countrywide pipelines network was 85.675 MMT during the same period. Gross refinsing margin during FY 2017-18 was US $ 8.48\9 per barrel as compared US $ 7.77 per bbl in 2016-17.

For the last quarter of 2017-18, IndianOils product sales volumes , including exorts, was 22.559 mMMT. Refining throughut was 17.152 MMT in Q4 FY 17-18 and throughput of the corporations countrywide pipelines network was 22.562 MMT during

Sarkaritel
By Sarkaritel May 23, 2018 07:57