“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.