S&P Warns IOC, BPCL, HPCL of Margin Squeeze Amid Oil Price Surge
S&P Warns IOC, BPCL, HPCL of Margin Squeeze Amid Oil Price Surge
- •S&P Global Ratings predicts margin pressure for IOC, BPCL, and HPCL as they may keep retail fuel prices unchanged to curb inflation.
- •Oil prices spiked over USD 100 per barrel due to the US-Iran conflict and Strait of Hormuz issues, though later fell to USD 88.
- •India, the third-largest oil importer, relies on imports for 88% of its crude needs, with significant exposure to the Strait of Hormuz.
- •Strategic petroleum reserves support only 10 days of consumption, with commercial stocks covering roughly 65 days.
- •Government intervention through budgetary allocations or excise duty cuts is possible but remains uncertain.
