INDO PETRO EXIM GROWTH CARD

PERIOD: April-February 07-08 (vs previous year)

Ttl Crude Imports : 111.09MMT (up 9.76%) USD61.16BLN (up 38.6%)

Ttl Product Imports : 20.19MMT (up 28.0%) USD13.40BLN (up 57%)

Ttl Product Exports : 36.16MMT (up 20.4%) USD23.86BLN (up 41%)

Reliance doubling up muscles at Jamnagar refinery, will give liquid exports a solid push this year.

Above data reflects, crude prices have moved twice as fast as products, thinning the refining margins.

Trillion dollar question is, whether the crude prices would go bust or they are into foreplay at the moment. Later seems to be more likely as most of the refiners are now hedging big time upstream thereby lessening the will to tame the wild.

Indian Oil PSUs feel the heat

Soaring crude prices and heavily subsidised petrol, diesel, LPG and kerosene in local markets are painting balance sheets of Indian Oil PSUs red. With borrowings rising at alarming levels, their investment and expansion plans may soon find a place in cold storage.

Rising food prices around the world are casting a shadow over bio-fuel futures, and have once again shifted the spot light on fossil fuels. On the other hand, being the election year in India, incumbent Government will have little or no will to pass on some of their burden to already disgruntled lot.

So, a double whammy for the oil export hub there. 2008 is a crucial year for its future.