News Brief | January 2017
India´s fuel demand to benefit refiners | Fitch
India´s oil and gas industry will benefit from the strong consumption growth in petroleum products in 2017, while profitability in the oil exploration and production segment will remain weak, Fitch Ratings says in a report. They expect product consumption to expand around five to six per cent in 2017. Fitch also expects gross refining margins (GRM) of all Indian oil refiners to narrow in 2017, while remaining stronger than the historical levels prior to FY16. This, together with higher volumes, is likely to support strong operating cash flows in 2017. Therefore, they expect these entities´ credit metrics to stay in line with their current standalone profiles despite their large capex in the medium term.