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Time of India
a day ago
- Business
- Time of India
IndianOil gains bulk diesel market share in April-May, beats Reliance Industries and Nayara
IndianOil has jolted the bulk diesel market, increasing its share by 10 percentage points in April-May and wresting ground from Reliance Industries and Rosneft-backed Nayara Energy-a striking reversal driven by new chairman A S Sahney's break from predecessor SM Vaidya's margin-first playbook in favour of market dominance. IndianOil's share surged to 53.5per cent in April-May this year, up from 43.6per cent in the same period last year, forcing private sector rivals RIL and Nayara to surrender a combined 7 percentage points from their last year's share of 25.7per cent . RIL's share dropped to 9.9per cent from 13.8per cent , while Nayara's fell to 8.7per cent from 11.9per cent . Among state-run firms, Hindustan Petroleum 's share contracted to 12.9per cent from 14.2per cent and Bharat Petroleum 's declined to 12.5per cent from 14.8per cent . IndianOil is using aggressive price discounts to boost volumes and push competitors aside, multiple industry executives said. Lower crude prices-currently around $65 per barrel, down from nearly $80 in January-have fattened oil companies' margins, enabling them to offer steeply discounted diesel to large customers. While all suppliers are offering diesel to bulk buyers below pump prices, some are going deeper to gain market share, they said. IndianOil has traditionally dominated diesel sales, but its market share slid to 43.6per cent in April-May 2024, down from 52per cent in the same period of 2023 and 60per cent in 2022. "As a marketing organisation, you can't afford to lose market share so rapidly. One day, you might suddenly find too much volume sitting in your refinery, hurting profits and limiting your ability to invest," said an industry executive defending the company's aggressive push. Roughly 12per cent of the diesel sold in India goes to bulk buyers, with the rest sold through petrol pumps. Bulk consumers such as the railways, defence and state transport corporations usually pay contracted prices discovered through tenders, while miners, manufacturers and smaller users typically buy on a monthly basis-shifting to whichever supplier offers the steepest discount. IndianOil's recent gains are concentrated among miners, manufacturers and some transporters, with strong traction in the mining belts of Jharkhand, West Bengal and Chhattisgarh, as well as in Rajasthan, Haryana and other states.
Time of India
a day ago
- Business
- Time of India
IndianOil gains bulk diesel market share in April-May, beats Reliance Industries and Nayara
IndianOil has jolted the bulk diesel market, increasing its share by 10 percentage points in April-May and wresting ground from Reliance Industries and Rosneft-backed Nayara Energy-a striking reversal driven by new chairman A S Sahney's break from predecessor SM Vaidya's margin-first playbook in favour of market dominance. IndianOil's share surged to 53.5per cent in April-May this year, up from 43.6per cent in the same period last year, forcing private sector rivals RIL and Nayara to surrender a combined 7 percentage points from their last year's share of 25.7per cent . RIL's share dropped to 9.9per cent from 13.8per cent , while Nayara's fell to 8.7per cent from 11.9per cent . Among state-run firms, Hindustan Petroleum 's share contracted to 12.9per cent from 14.2per cent and Bharat Petroleum 's declined to 12.5per cent from 14.8per cent . IndianOil is using aggressive price discounts to boost volumes and push competitors aside, multiple industry executives said. Lower crude prices-currently around $65 per barrel, down from nearly $80 in January-have fattened oil companies' margins, enabling them to offer steeply discounted diesel to large customers. While all suppliers are offering diesel to bulk buyers below pump prices, some are going deeper to gain market share, they said. IndianOil has traditionally dominated diesel sales, but its market share slid to 43.6per cent in April-May 2024, down from 52per cent in the same period of 2023 and 60per cent in 2022. "As a marketing organisation, you can't afford to lose market share so rapidly. One day, you might suddenly find too much volume sitting in your refinery, hurting profits and limiting your ability to invest," said an industry executive defending the company's aggressive push. Roughly 12per cent of the diesel sold in India goes to bulk buyers, with the rest sold through petrol pumps. Bulk consumers such as the railways, defence and state transport corporations usually pay contracted prices discovered through tenders, while miners, manufacturers and smaller users typically buy on a monthly basis-shifting to whichever supplier offers the steepest discount. IndianOil's recent gains are concentrated among miners, manufacturers and some transporters, with strong traction in the mining belts of Jharkhand, West Bengal and Chhattisgarh, as well as in Rajasthan, Haryana and other states.
Time of India
2 days ago
- Business
- Time of India
IndianOil gains bulk diesel market share in April-May, beats Reliance Industries and Nayara
IndianOil has jolted the bulk diesel market, increasing its share by 10 percentage points in April-May and wresting ground from Reliance Industries and Rosneft-backed Nayara Energy-a striking reversal driven by new chairman A S Sahney's break from predecessor SM Vaidya's margin-first playbook in favour of market dominance. IndianOil's share surged to 53.5% in April-May this year, up from 43.6% in the same period last year, forcing private sector rivals RIL and Nayara to surrender a combined 7 percentage points from their last year's share of 25.7%. RIL's share dropped to 9.9% from 13.8%, while Nayara's fell to 8.7% from 11.9%. Among state-run firms, Hindustan Petroleum 's share contracted to 12.9% from 14.2% and Bharat Petroleum 's declined to 12.5% from 14.8%. IndianOil is using aggressive price discounts to boost volumes and push competitors aside, multiple industry executives said. Lower crude prices-currently around $65 per barrel, down from nearly $80 in January-have fattened oil companies' margins, enabling them to offer steeply discounted diesel to large customers. While all suppliers are offering diesel to bulk buyers below pump prices, some are going deeper to gain market share, they said. IndianOil has traditionally dominated diesel sales, but its market share slid to 43.6% in April-May 2024, down from 52% in the same period of 2023 and 60% in 2022. "As a marketing organisation, you can't afford to lose market share so rapidly. One day, you might suddenly find too much volume sitting in your refinery, hurting profits and limiting your ability to invest," said an industry executive defending the company's aggressive push. Roughly 12% of the diesel sold in India goes to bulk buyers, with the rest sold through petrol pumps. Bulk consumers such as the railways, defence and state transport corporations usually pay contracted prices discovered through tenders, while miners, manufacturers and smaller users typically buy on a monthly basis-shifting to whichever supplier offers the steepest discount. Live Events IndianOil's recent gains are concentrated among miners, manufacturers and some transporters, with strong traction in the mining belts of Jharkhand, West Bengal and Chhattisgarh, as well as in Rajasthan, Haryana and other states. Economic Times WhatsApp channel )
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Business Standard
01-05-2025
- Business
- Business Standard
Indian Oil pauses Russia oil deal talks, says not related to US sanctions
Indian Oil Corporation Ltd (IOCL), the country's largest oil refiner and fuel retailer, has paused discussions on a new long-term crude oil supply deal with Russian energy giant Rosneft, citing global geopolitical uncertainties and evolving trade dynamics. Speaking at a post-results press conference on April 30, IOCL Chairman and Managing Director AS Sahney stated that while the company remains open to a term agreement with Russia, it is not engaged in any active negotiations. When asked, Sahney denied that the decision was related to US sanctions on Russian oil. India-Russia crude oil trade Indian state-run refiners—IOCL, BPCL, and HPCL—had increased Russian crude purchases after the Ukraine war and were in talks with Moscow for term deals. The company had a term deal with Russia, which expired in March 2023 and has not been renewed since. It currently sources Russian oil solely on a spot basis. In March, reports also emerged that Rosneft was exploring an exit from its 49.13 per cent stake in Nayara Energy (formerly Essar Oil) due to challenges in repatriating earnings amid Western sanctions. Russian oil share in Indian Oil Russian crude's share in IOCL's overall oil basket has dropped to 22 per cent in FY25, down from 30 per cent in FY24. Sahney clarified that the decline was due to commercial factors and not the US sanctions. 'All the crude that we are buying (from countries) is totally on a commercial basis. It has to meet my requirements, and it has to fit the bill of being commercially viable," Sahney said. US sanctions on Russian oil The move comes amid renewed US sanctions targeting Russian oil firms and shipping networks. In January 2024, under then president Joe Biden, the US imposed sanctions on Russian oil majors, including Gazprom Neft and Surgutneftegaz, as well as around 180 oil tankers. Within the Trump administration, there have been differing views on how to handle sanctions on Russia. US President Donald Trump has indicated a willingness to lift certain sanctions on Russia, including oil, while also considering imposing "secondary sanctions" on countries that continue to purchase Russian oil. Indian Oil profit skyrockets in Q4, drops in FY25 Meanwhile, IOCL reported a 57.7 per cent year-on-year rise in consolidated net profit for the fourth quarter of FY25, reaching Rs 8,123.64 crore, up from Rs 5,148.87 crore in the same period last year. Sequentially, net profit surged 284 per cent from Rs 2,115.29 crore in Q3. Despite the strong quarterly performance, annual net profit dropped sharply to Rs 13,597 crore, a 67 per cent decline from Rs 41,729 crore in FY24, due to falling global crude prices. The Q4 profit rise was largely attributed to reduced expenses, which fell to Rs 2.12 trillion from Rs 2.17 trillion in Q4 FY24, and inventory gains, although the company also reported an overall inventory loss of Rs 2,000 crore for the year.
Time of India
01-05-2025
- Business
- Time of India
Indian Oil Corporation says not in talks for term crude import deal with Russia
Indian Oil Corporation (IOC), the nation's largest oil firm, is not discussing a term or fixed quantity deal for import of Russian oil given the volatility in the international market, Chairman A S Sahney said on Wednesday. India's import of Russian oil has surged since the start of the Ukraine war in February 2022. Russia was India's top crude oil supplier for the third consecutive year in 2024-25, primarily driven by attractive discounts on Russian crude. The discounts, which have narrowed since, offset the logistical challenges and longer shipping times associated with sourcing oil from Russia. Sahney said the share of Russian oil in the basket of oil that IOC imports for refining into fuels like petrol and diesel, has come down to 22-23 per cent from 30 per cent. "It has to meet my requirements and also be commercially viable," he told reporters here. The crude, he said, has to fit into the company's rigorous optimisation model which looks at producing the fuel that market wants from the most economically available source. "It has to make commercial sense for me to import oil from a particular source," he said, adding the decision is not driven by sanctions or any other geopolitical issue. Asked if the company was looking at getting into a term import deal for Russian crude, he said, "No. As of now, we are not in any active negotiations but we are open to it." "We are waiting and watching because everyday things are changing," he said. "I don't think it is time to enter into any new term deal in these conditions." On imports from the US, he said there is no 'mandate' from anyone to import a particular quantity of oil from any part of the world. "We import if it makes commercial sense," he said. The US has emerged as a significant crude oil supplier to India, which is more than 85 per cent dependent on imports to meet its oil needs. Increasing oil and gas imports from the US has been talked about as one of the bargaining chips that India may use to avoid steep tariffs proposed by the Trump administration. Oil and gas could be part of the trade deal that India may enter into with the US.
