Indian Oil: For and against
(Apr 7, 2008)
We profile the factors working in favour of and against Indian Oil in this article.

Trend in Indian petroleum products
(Mar 18, 2008)
We have analysed the volumes of petroleum products sold in India over the past decade. In this article, we shall take a look at some of the trends observed across the various categories.

Petrol, Diesel price cut: Our view
(Feb 19, 2007)
Rising inflation has been a key concern for the government over the past few weeks. Hence, in an effort to curb the same, the government recently reduced the prices of major transportation fuels like Petrol and Diesel. Petrol, the fuel used predominantly for private transportation, has been made cheaper by Rs 2 per litre (reduction of 4.5%), while diesel, the public transport fuel has been made cheaper by Rs 1 per litre (reduction of 3.2%). In this write up, we analyse the various scenarios of absorbing this reduction by the government and possible impacts of the same.

Fuel prices: India vis-à-vis the others
(Feb 14, 2007)
In the previous article, Petrol: What are we paying for?, we had a look at the different components that make up the domestic petrol prices. It was revealed that basic costs form only 48% of the selling price of the petrol and the remaining 52% was accounted for by taxes. Does this mean that the government is charging us unfair prices? We will try to resolve this question by comparing the tax component of the domestic transport fuel prices (petrol and diesel) vis-à-vis the quantum of tax component that currently prevails in some of the other nations.

IOC: Rescue act…
(Jan 29, 2007)
Indian Oil Corporation (IOC) announced its 3QFY07 and 9mFY07 results late on Monday. Topline for 3QFY07 and 9mFY07 registered growth of 17% YoY and 23% YoY respectively. On the back of higher crude oil prices on a YoY basis, the company recorded loss at the operating level during 3QFY07. However, it was the issuance of the oil bonds to the tune of Rs 25 bn (forming part of other income) that helped the company to register a positive bottomline during 3QFY07, against a loss in 3QFY06. For 9mFY07, oil bonds to the tune of Rs 97 bn forming part of other income along with extraordinary income from the sale of stake in ONGC helped company to register improved profitability.

Refining industry: A complete overview- I
(Dec 20, 2006)
Crude oil is a mixture of scores of chemicals and compounds, primarily hydrocarbons. Crude oil must be broken down into its various components by distillation before these chemicals and compounds can be used as fuels or converted to more valuable products. For converting the basic hydrocarbon, crude, into refined consumer products we require refineries. The refined products are then ultimately sold to end-users. Thus on the basis of this, we classify the oil industry into two segments, first upstream i.e. exploration and production, second downstream i.e. refining and marketing.

IOC: Government to the rescue!
(Nov 22, 2006)
Indian Oil Corporation (IOC) recently announced its 2QFY07 results. Topline registered a growth of 26% YoY, while the operating margins turned negative. The dismal operating performance can be attributed to Oil marketing companies’ (OMCs) inability to pass on the rise in crude oil prices to the consumers, with IOC being no exception. Interest expenditure increased by 45% during the quarter. However, it was the issuance of the oil bonds to the tune of Rs 72 bn (forming part of other income) that helped the company register a positive bottomline.

Private players in fuel marketing: A serious threat?
(Oct 6, 2006)
The marketing of petroleum products was solely with the public sector oil marketing companies (OMCs) prior to dismantling of the APM and deregulation of the downstream oil-marketing segment. IOC, BPCL, HPCL and IBP were the sole downstream players (OMCs) in the oil value chain. However, the sector was deregulated and opened up for the private players at the start of FY03. Reliance (RIL), Essar and Shell were amongst the key players to be granted marketing rights. With the entry of private players, there were talks of fierce competition from these players. However, the situation did not turn out in that manner, as private players expanded their networks at a slower pace than anticipated. In this write up, we analyse the competitive scenario that is likely to develop over the next few years.

IOC: The ‘Extra-ordinary effect’
(Aug 1, 2006)
Indian Oil Corporation (IOC) announced its 1QFY06 results. Topline registered a growth of 26% YoY, while the operating margins turned negative. The dismal operating performance can be attributed to Oil marketing companies’ (OMCs) inability to pass on the rise in crude oil prices to the consumers with IOC being no exception. Interest expenditure almost doubled during the quarter, damages from which were kept under check to an extent by a 50% YoY increase in other income. However, it was the capital gain on the sale of a stake in ONGC that helped the company register a positive bottomline

Indian Oil Corporation (IOC): Business model analysis
(Jul 3, 2006)
After covering a host of standalone refineries, we now shift our focus towards the refining and marketing (R&M) aspect of the energy value-chain. We start with this segment by analyzing the biggest player on the block, IOC.