Shift in Govt's crude oil import policy may help IndianOil save 30 cents/barrel
New Delhi   22-Mar-2017

Indian Oil Corporation Ltd (IndianOil) may end up saving about 20-30 cents a barrel in its crude oil import bill during the current fiscal, following an increase in purchases from the spot market.

“The share of spot has grown by 10 per cent in the overall mix since the government liberalised the policy to source crude oil…We are saving around 20-30 cents per barrel on these spot purchases,” B Ashok, Chairman, IndianOil, told BusinessLine.

In April 2016, the government replaced the existing policy on crude oil import by oil PSUs and empowered them to evolve their own policies. Till fiscal 2015-16, almost 80 per cent of the crude bought by IndianOil was through term contract and about 20 per cent through spot market, today spot purchase stands at 30 per cent.

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