Indian oil refiners may take Rs 25000-crore hit due to plunging oil prices
NEW DELHI: The wild plunge in crude oil prices is likely to result in India’s oil marketing companies taking on inventory losses worth Rs 25000 crore for the quarter ended March 31.
According to a Crisil Ratings analysis, the 70 per cent drop in crude oil prices over the course of the quarter had brought average crude oil prices down from $55 per barrel in February to just $20 per barrel by the end of the quarter. “This has caught refiners on the wrong foot,” noted Crisil directors Sachin Gupta and Nitesh Jain.
