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IOC Eyes Stable Oil Prices Amidst Geopolitics
22 Jan
Summary
- Global crude prices expected to remain stable near current levels.
- Weaker rupee impacts profitability; healthy refining margins offer support.
- IOC is expanding into biofuels, green hydrogen, and SAF.
Indian Oil Corporation (IOC) Chairman AS Sahney indicated that global crude oil prices are likely to remain stable near current levels, attributing this to ample supply despite ongoing geopolitical uncertainties. He also addressed concerns regarding the rupee's depreciation, acknowledging its negative impact on profitability but highlighting that robust refining margins are helping to mitigate these effects.
Sahney confirmed there is no immediate indication of an excise duty hike on fuels. IOC is significantly investing in renewable energy, with plans for a 10,000-tonne per year green hydrogen plant at Panipat by December 2027 and the commencement of sustainable aviation fuel supply by May-June 2026 to meet blending mandates.
The company is also expanding its bio-energy portfolio, focusing on compressed biogas and ethanol. Sahney expressed confidence in IOC's growth trajectory, emphasizing efficiency gains across refineries and reaffirming net-zero ambitions by 2046.
