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Entry of foreign player could improve efficiency, bring focus to the oil sector, says HPCL’s MK Surana

Updated : November 28, 2019 08:39 AM IST

Last week, the Cabinet cleared BPCL’s divestment to a non-government entity. To discuss how this would impact the dynamics of the sector, CNBC-TV18 spoke to MK Surana, CMD, HPCL.

Surana said the entry of a new player could change the business scenario a bit.

"In the sense, if there are foreign players — the multinationals — then they may have their own processes and way of doing business but overall it could bring more efficiency, more focus and more sharpness in the sector," he said.

He said as of now, except for domestic LPG and kerosene for PDS, the pricing is de-controlled and domestic prices are already aligned with international prices.

When asked if one would start pencilling in better gross refining margins (GRMs), Surana said the indications are there that there may be better GRMs in 2020.

Talking about diesel consumption, Surana said from April to October, the consumption growth was negative but November saw an uptick with a growth of 5-6 percent.

“So, if diesel demand picks up then it should be good news for the oil sector,” said Surana.
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