The decline in crude prices reduces the working inventory and this will prove to be profitable for HPCL , says BK Namdeo, the company’s Director – Refineries. Namdeo says production margin of refinery is currently good but continued volatility in crude or US dollar prices might impact the performance in coming quarter. “Our refining margins totally depend on the price differential at the point of dispatch from the supplier to our refinery and then to the final retail outlet. Typically, the price is the monthly average plus either a premium or discount depending on crude and dollar prices”, Namdeo says. Namdeo expects the throughput this year to be marginally higher or similar to the levels seen in the previous quarter.
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