No plans to absorb fuel prices: BPCL chairman

There has been no communication so far from the government to absorb part of the fuel prices to cushion customers from the rising petrol and diesel prices to Bharat Petroleum Corp Ltd.

Published: 13th September 2018 04:10 AM  |   Last Updated: 13th September 2018 04:10 AM   |  A+A-

BPCL-Kochi Refinery IREP

By Express News Service

MUMBAI: There has been no communication so far from the government to absorb part of the fuel prices to cushion customers from the rising petrol and diesel prices to Bharat Petroleum Corp Ltd (BPCL), one of the public sector refining and marketing companies, chairman D Rajkumar told reporters in Mumbai. 

“We are passing on the price … No plans to absorb fuel prices,” Rajkumar said, explaining the high component of taxes on the transportation fuels in a city like Mumbai. BPCL that currently operates a 12 million metric tonnes per year refinery in Mumbai plans to move some of its marketing and LPG facilities out of the present refinery complex to decongest the complex and also improve safety measures following a fire accident last month. 

“Some of the non-refinery assets like LPG and some of the tankages we plan to move to Rasayani,” said R Ramachandran, director, refineries. It is also replacing its two FCCU (Fluid Catalytic Cracking Unit) to orient it more towards its focus on production of petrochemicals, he said. BPCL had earlier this year bought 500 acres of land from Hindustan Organic Chemicals Ltd at Rasayani near Mumbai and plans to build a $3 billion (Rs 2,100 crore) petrochemical plant. 

The petrochemical plant would use the feedstock from Mumbai refinery. BPCL is also in talks with the Kuwait Petroleum Corporation for stake sale in its joint venture (with Oman Oil Co) refinery at Bina in Madhya Pradesh that has just completed a creeping expansion of its refinery from 6 to 7.8 million metric tonnes per year. It is looking for funds to draw a blueprint for further expansion of the Bina refinery. It is also developing an oil block in Brazil through a 50:50 joint venture with Videocon.

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