02 March 2010 08:15 [Source: ICIS news]
SINGAPORE (ICIS news)--Indian base oils market players said on Tuesday they were dismayed by the unexpected hike of import duty on base oils to 10% from 5% in the country's budget announced last week.
“The reduction in duties implemented by the Indian government in 2008 at the height of oil price boom has effectively been reinstated,” a large Indian lubricant blender said.
Another base oils buyer said: "The import duty hikes on base oils were totally unexpected and shocking."Base oils are used for making automotive and industrial lubricants, process oils like transformer oils and white oils.
Import offers for group I base oils of Russian origin were heard around $760-765/tonne (€562-566/tonne) CFR (cost and freight)
Local base oils refineries like Indian Oil raised domestic prices of the product by Rs1000-2400/tonne ($22-52/tonne) on 2 March citing higher costs due to increased import duty on crude.
($1 = €0.74 / $1 = Rs46)For more on base oils visit ICIS chemical intelligence
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