HPCL chief indicates market forces may slightly raise fuel prices
There may not be much relief in sight for consumers with petrol and diesel prices remaining high, driven by market forces, indicated Hindustan Petroleum Corporation (HPCL) Chairman and Managing Director, M K Surana.
Speaking at a press interaction after announcing the third quarter earnings for fiscal 2020-2021, Surana said, “The increase in crude oil price is because of the mismatch or the anticipated mismatch between the pick-up in demand and the capacity to ramp up the production immediately…On a long term or medium-term basis, we do not expect crude oil prices to go substantially high and we anticipate it to remain between $50 and $60 a barrel. To that extent, the fuel prices do factor in that type of range of crude prices.”
“The prices are expected to hover around less than $55 a barrel in the near future. While we may see momentary spikes leaning towards $60 a barrel, I think they lean more towards $55 a barrel, less towards $60,” he said.
Surana explained that there may be relief in the form of a stronger rupee through the exchange rate, but this can be dampened with a hike in international product prices.
