Rising demand for fuels increases oil company profits

19. August 2021

Following the imposition of a national lockdown, demand for petroleum-based products in India fell during April and May 2020. Now, financial agency Moody’s Investors Service predicts an upturn and growth for the Indian oil industry. In the details, the financial watcher sees state-owned firms IOC, BPCL and HPCL growing over the next 12 to 18 months. The companies would benefit from both rising demand and improved methods of their refineries compared to other competitors, increasing profit margins. The Indian oil and gas industry is growing and offers a strong sales market for relevant product groups and components such as gas and pressure vessels, valves and fittings or safety equipment. These products usually have to undergo PESO certification.

With the partial lifting of the lockdown and commissioning of industrial operations, Moody’s expects higher demand for fuels. As a result, the three rated companies, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), will be able to increase their revenues and profits in the next 12 to 18 months, analysts said. The forecast can also be considered very reliable, they said, because in the distribution of fuels in India, the three companies, IOC, BPCL and HPCL, own about 90 percent of the market and have an oligopoly structure. The state-owned ownership also ensures secure financing and operation without major competition. Moody’s also learned that the government, through these three oil-processing companies, will continue to invest large sums of money to expand the facilities in order to boost the domestic economy.

If you are interested in understanding what requirements are needed for your product regarding PESO Certification or other certifications to be imported into India, please do not hesitate to contact us by email or phone at +49-69-271 37 69 261. There is no cost or obligation for us to check for you. If a certification need is discovered we can provide a quotation to make sure that all your certification needs are covered.

If you have any questions you can also use our chat-window in the bottom right. (Please check your browser settings if you can’t see the window)

For more information about PESO certification, please refer to our free brochure “PESO Certification Made Easy“.