Russia’s price restrictions boost India’s interest in naphtha, fuel oil, but diesel – #Russias #price #restrictions #boost #Indias #interest #naphtha #fuel #oil #diesel
NEW DELHI, Feb 14 (Reuters) – More Indian firms are seeking cheap raw materials for their refineries and petrochemical plants after price caps imposed by Western countries, six refining sources said. Russia is involved in buying naphtha.
In order to curb the financing of Moscow’s war against Ukraine, the “Group of Seven” countries, Europe The price of processed products such as naphtha and fuel oil by the Commonwealth and Australia is 45 dollars/barrel is limited.
By comparison, Singapore naphtha was sold at $80.03 a barrel on Tuesday, free on board.
The price ceiling on February 5 of the EU Russia was carried out together with the ban on the import of oil products.
of India Russia The interest in increasing oil product imports comes after the world’s third-largest crude importer, the West, has become Moscow’s biggest oil customer after China as it avoids supplies from Moscow. Cheap Russian crude has reduced costs and boosted margins for Indian refineries.
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Reliance Industries Ltd., the owner of the world’s largest oil refining complex. (RELI.NS) increased its imports of naphtha from Russia in February to about 222,000 tons.
According to information, Reliance started importing Russian naphtha in September and transported about 217,000 tons by the end of January.
Reliance, already India’s largest buyer of Russian naphtha and fuel oil, will consider increasing imports further, one of the sources said.
Its fuel oil imports from Russia tripled to around 4.8 million tonnes in the first 11 months of this fiscal year from April 2022 to February 2023, from about 1.6 million tonnes in 2021/22, according to data from Refinitiv Eikon. is about to set a record.
According to the sources, Bharat Petroleum Corp., the state-owned oil refining companies with petrochemical facilities. (BPCL.NS) and Indian Oil Corp. (IOC.NS) is also looking for opportunities to buy Russian naphtha.
“So far, we have none for Russian oil offer it didn’t happen. It’s already the first days. If we buy it at a cheaper price, we will definitely buy Russian oil,” said an official of one of the state oil refineries.
Haldia Petrochemicals Ltd will also consider buying Russian naphtha if the quality and cost match its plants, two company sources said.
Reliance, IOC, BPCL and Haldia Petrochemicals did not respond to emails from Reuters seeking comment.
The G7 price caps prohibit Western insurance, shipping and other companies from financing, insuring, trading, brokering or transporting cargoes of Russian crude and petroleum products unless they are purchased at or below specified price caps.
NOT DIESEL
However, Indian refiners are unlikely to buy Russian diesel because the fuel 10per barrel for freight and insurance costs to a price limit of $0 10-15 dollars after adding import costs are high.
in Asia 10 The price of ppm sulfur gasoline was 110.57 per barrel on Tuesday dollars has been
Unexpected for diesel exports, making re-export uneconomical tax there is also
“As there is no shortage of diesel in India, any diesel import from Russia will increase India’s exports and export windfall tax will be levied,” said one refinery executive.
Unlike naphtha, which is imported by some refineries and petrochemical producers, India is self-sufficient in diesel production, as most refineries have traditionally gasoline aimed at maximizing production.
“Due to its proximity to both Russia and Europe, we believe that the Middle East is the best region for importing diesel from Russia,” said the head of the oil refinery.
Reporting by Nidhi Verma and Mohi Narayan; Edited by Florence Tan and Jason Neely
Our standards: Thomson Reuters Trust Principles.
2023-02-15 08:46:44
Source – reuters
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