Union Petroleum Minister Hardeep Singh Puri on Friday praised the "stellar profits" of government-owned oil marketing companies and said they have learnt to manage volatile market risks.
"I take special pride in BPCL that reported 20% jump in profit for a company that people wanted to sell before," Puri told NDTV Profit's Tamanna Inamdar in an exclusive conversation. OMCs also benefit when oil prices go up, since their export margin on refined crude improves, he said.
"They have learnt that you rejoice in success now but prepare for another day. Green transition is major repositioning," he said.
The minister noted India's oil consumption has risen from five million barrels per day to 5.5 million barrels per day in the last three years. "Even when one looks at conservative estimates, India's oil demand will keep growing till 2040."
Likewise, India's refining capacity is going to increase substantially, easing impact from pressure on global refining margins.
"I take special pride in BPCL that reported 20% jump in profit for a company that people wanted to sell before," Puri told NDTV Profit's Tamanna Inamdar in an exclusive conversation. OMCs also benefit when oil prices go up, since their export margin on refined crude improves, he said.
"They have learnt that you rejoice in success now but prepare for another day. Green transition is major repositioning," he said.
The minister noted India's oil consumption has risen from five million barrels per day to 5.5 million barrels per day in the last three years. "Even when one looks at conservative estimates, India's oil demand will keep growing till 2040."
Likewise, India's refining capacity is going to increase substantially, easing impact from pressure on global refining margins.
Puri also said losses on liquified petroleum gas sales need to be factored in while analysing operating margins.
Despite an increase in input raw material costs, the three fuel retailers have kept the price of domestic LPG unchanged at Rs 803 per 14.2-kg cylinder since March 2024. This has led to under-recoveries on LPG sales, significantly affecting their earnings.
The OMCs have been expanding their pipeline network across the country, which will eventually bring down the cost of natural gas, he said. "Whenever there is under-recovery, the government is there to compensate."
The government, from time to time, compensates Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. for these losses.
The reduction in natural gas under the Administered Pricing Mechanism or APM is transitional, the minister said, adding the government is intent to bring gas under GST.
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