NEW DELHI: Deregulation of domestic crude appears to have tipped the balance in favour of producers as green shoots of a free market emerge. In term deals signed after getting marketing freedom, state-run producer ONGC is commanding a premium over global benchmark Brent for Mumbai offshore oil in spite of attempts by buyers, also from the public sector, to beat down prices by leveraging discounts on Russian supplies.
Bharat Petroleum and Hindustan Petroleum recently entered into term deals with ONGC for 4.5 million tonnes of Mumbai crude at a price benchmarked to Brent plus a premium of 1%. It also signed pact with refining arm MRPL for a small volume. At the prevalent $80 per barrel price of Brent, ONGC will realise an additional income of $0.8 under these deals, people in the know said.
