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Revocation of 'Asian Premium' from Oil Price: Will it be a Major Relief for Import Dependent Indian Economy?

The Organization of Petroleum Exporting Countries (Opec) should sell oil at a discount to major Asian countries such as India that have emerged as major purchasers instead of charging the so-called Asian premium, oil minister Dharmendra Pradhan told a key OPEC meet.

Source:  ET

SNP Insights

Cancellation of Asian Premium from Oil Price, will lead to substantial raise in gross refinery margin of Oil Refinery companies like Indian Oil, BPCL,HPCL, Reliance & Essar. Subsequently, cost of petroleum products will come down, which will be a major thrust towards country economy. This will impact Current Account Balance of country in a very positive way. So It is very much intersting to see OPEC countries decission on Indian appeal & subsequent impact on O&G sector.

Source: SNP Infra Research