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Divesting Stake in BPCL, HPCL would Improve Efficiency in Oil Sector – HPCL’s CMD

The government's move to divest stake in BPCL and HPCL would improve efficiency and bring back focus to the oil sector, said MK Surana, CMD, HPCL. The Centre last week gave approval for strategic disinvestment of Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Ltd.

 

"The entry of a new player could change the business scenario a bit, in the sense if there are foreign players... 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," said Surana in an interview.

 

With regards to pricing, he said the domestic prices are already aligned with international prices. Surana added the indications are there that there may be better gross refining margins in 2020. Talking about diesel consumption, Surana said from April-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,” he added.

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