NEW DELHI: Bharat Petroleum Corporation Ltd (BPCL) on Monday highlighted the risks that low crude oil prices were having on the refining segment, even though lower crude oil prices were generally beneficial for an oil importer like India, which meets 85 per cent of its oil needs from foreign sources.
BPCL chairman and managing director (CMD) K Padmakar said that the overall oil and gas sector has been hit by “the double whammy of declining demand due to worldwide lockdowns and overflowing supplies due to the supply war among major producers”. “A low oil price regime, like the one prevailing now, is favourable for the economy. However, with the decline in demand and reduction in product cracks, profitability of Indian refiners has come under immense pressure,” he added.