Indian fuel retailers face margin pressure amid rising energy prices: Rating agencies
NEW DELHI, Mar 11 (PTI): India’s state-owned oil marketing companies – Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited – are under pressure from rising global crude and gas prices, limited domestic fuel price pass-through, and dependence on imported energy, global rating agencies said.
India imports 88 per cent of its crude and nearly half its natural gas, with 30-55 per cent of supplies passing through the Strait of Hormuz. Strategic petroleum reserves cover just 10 days of consumption, while commercial stocks provide around 65 days, leaving OMCs exposed to supply disruptions.
S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings, in separate notes, detailed the impact of the widening West Asia conflict, triggered by the US and Israel launching attacks on Iran and Tehran retaliating.
