Private Refiners Shift Focus To Domestic Fuel Market Amid Tightening Export Margins

(MENAFN- KNN India) New Delhi, Jun 6 (KNN) India's major private refiners, Reliance Industries and Nayara Energy, are increasingly turning their attention to the domestic fuel market as global refining margins tighten.

This strategic shift comes as demand in developed markets and China weakens, and competition from new refineries globally intensifies.

The International Energy Agency projects India to become the largest source of global oil demand growth through 2030, making the domestic market more attractive for refiners.

Reliance and Nayara have capitalised on discounted Russian crude to offer competitive prices at the pump. Reliance's retail arm, Jio-BP, has expanded its network to nearly 1,916 outlets, with plans to invest approximately Rs 10 billion annually to enhance its presence.

Similarly, Nayara operates over 6,500 fuel stations and aims to add 400 more this year, offering discounts of Rs 2–3 per litre on gasoline and Rs 1 per litre on diesel.

In contrast, state-owned refiners like Indian Oil, Bharat Petroleum, and Hindustan Petroleum face challenges due to government-imposed pricing caps and losses on subsidised products. These constraints have limited their ability to compete effectively in the retail fuel market.

The shift by private refiners underscores a broader trend of adaptation to changing global dynamics and domestic demand patterns.

By focusing on the growing Indian fuel market, these companies aim to bolster their market share and profitability in the evolving energy landscape.

(KNN Bureau)

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