CHENNAI: Reiterating that crude oil prices were increasingly being influenced by geo-political factors, Sanjiv Singh, Chairman of Indian Oil Group of Companies on Thursday said the current crude oil prices were not justified.
At a press meet to discuss the results of Chennai Petroleum Corporation Limited (CPCL), which is a group company of Indian Oil, for financial year 2017-18, he said that currently crude prices were being determined not just by the traditional factors of demand and supply.
“Traditionally demand and supply were the factors,” he said. “Many other factors like geo-political factors are influencing crude prices now. These prices cannot be justified and should be more reasonable, but we just have to wait and watch. High prices will impact oil importing countries like India. But while supply is in their hands (oil exporting countries), demand is in our hands.”
Revenue from operations during 2017-18 was higher for the company at ` 44,188 crore as compared to `40,608 crore the previous year, which meant a growth of nine per cent owing to increased product sales and higher product prices.
Profit After Tax declined to `913 crore as against `1,029 crore the previous year. The Board of Directors recommended a dividend of 185 per cent on the paid-up equity capital of the company.
They also announced that a nine MMTPA refinery at Cauvery basin in Nagapattinam is being set up at an estimated cost of around `27,450 crore. In principle approval has been obtained for the project and preparation of the Detailed Feasibility Report is underway.
Officials at the meet added they do not expect to face any resistance from those living nearby as it is to be implemented on an existing refinery.