Essar Oil CEO expects upswing in domestic demand

Essar Oil Ltd.’s Managing Director and CEO L.K. Gupta, said that although the country’s refining capacity appears to be in excess, they expect an upswing in domestic demand for diesel fuel and other petroleum products. Gupta explained that the company’s growth prospects and profitability are not directly affected by crude oil prices. “Crude prices do not have a direct impact on refiners’ profitability, which is determined largely by petroleum product cracks (difference between crude and product prices). Generally, product prices move in tandem with crude prices in the medium and long run. Therefore, the refinery margins are not much impacted by the increase or decrease in crude prices.” In an interview with Business Line, Gupta said Essar Oil is eyeing to export Euro 4- and 5-compliant petrol and diesel fuel to Australia, New Zealand, North-West Europe and the U.S. (April 6, 2012)