NEW DELHI: Bharat Petroleum (
BPCL
) sees
discounts
on
Russian crude
shrinking to $3-6 per barrel against $8-10 last year amid range-bound
global oil prices
, but will continue to import “significant” volumes, the company brass told investors on Friday.
“Our expectation is that global supply and demand will be relatively balanced and the prices would be in the range of $83-87.
The factors that could impact prices is largely related to unplanned production disruptions, a risk highlighted by the recent tensions in the Middle-East,” chairman G Krishnakumar said in his opening remarks at the investors call.
Picking up the thread, company’s director finance V R K Gupta said the discounts on Russian crude are expected to come down due to moderating
demand-supply
situation. “Last year, there was an over-supply. But now demand-supply dynamics is in moderate zone. So we are expecting moderate discounts, not aggressive.”
Russian shipments made up roughly 39% of crude processed by BPCL in 2023-24 and will occupy a significant volume in the company’s total throughput in the current fiscal.
Buoyed by record profit of Rs 26,673 crore in 2023-24 against Rs 1,870 in the preceding fiscal, the company plans to add 4,000 retail outlets as part of a Rs 20,000 crore push to expand the marketing business.
Projecting 5% growth in petrol demand and about 2% rise in diesel consumption in the current fiscal, Krishnakumar outlined a Rs 1.7 lakh crore pathway for ramping up refining capacity and a host of initiatives in the petrochemicals, gas and emerging energy sources.
