India’s HPCL cut base oil prices as buying interest thinned

03 August 2012 11:17  [Source: ICIS news]

SINGAPORE (ICIS)--Indian state-owned oil major Hindustan Petroleum Corp Ltd (HPCL) has cut prices of its Group I base oil cargoes by Indian rupees (Rs) 3-6/litre ($0.05-0.11/litre) because of weak domestic demand, a buyer said on Friday.  

The price cut was announced by the company on 1 August and took immediate effect.

List prices of SN150 base oils were reduced by Rs3.61/litre to Rs74.25/litre from 20 July prices of SN70 fell by Rs 3.38/litre to Rs 77/litre. SN500 prices were down by Rs 6.58/litre to Rs71.75/ litre while brightstock prices were reduced by Rs 4.41/litre to Rs 68.36/litre.

HPCL had previously cut its prices on 20 July 2012.

“Three price cuts in a span of a month clearly shows that the Indian market is weakening,” an Indian buyer told ICIS.

“Moreover, competitively priced cargoes from Russia have also weighed on overall buying interest for domestic cargoes and this has also prompted the price reductions,” the buyer added.  

Buyers said that two other refineries in India, Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL), have not announced price cuts.

($1 = Rs 55.80)

By: Serena Seng

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