India state refiners expect their profit margins to hold their strength this year as demand growth accelerates for fuel products amid a record $93 billion spent on infrastructure and stable crude oil prices, company executives and analysts said.
India’s sales of cars and especially motorbikes are forecast to rise rapidly, even as the development of a Delhi-Mumbai industrial corridor drives consumption of the country’s primary fuel products, diesel and gasoline.
The infrastructure programme for fiscal 2018/19 calls for more than 80,000 km (50,000 miles) in new highways to better connect rural areas with urban hubs. Roads and other construction require oil-based products such as tar and plastic piping, and fuel to move materials by truck and rail.
“They (these projects) will have a cascading effect on fuel demand,” said R. Ramachandran, director of refineries at Bharat Petroleum, adding that this would be reflected directly in strong refining margins. Read More…
Latest posts by ET Energy World (see all)
- MSEDCL to buy additional 1,400 Mw solar power - September 22, 2018
- Prime Minister Narendra Modi to inaugurate NTPC, MCL coal mines in Odisha tomorrow - September 21, 2018
- Niti Aayog releases draft model concession agreement for EVs - September 21, 2018