Just ahead of Diwali, the Central government announced an excise duty cut on petrol and diesel.

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“This excise duty cut definitely is a big relief to the consumers and to the oil marketing companies (OMCs) also,” said Sandeep Kumar Gupta, Director - Finance and CFO at Indian Oil Corporation (IOC), in an interview with CNBC-TV18.

Crude prices are still firming up. In case the prices get firmer, this cut gives more elbow room to maneuver the prices, he noted.

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IOC has been passing on crude price hikes to consumers. “So, this does not affect our marketing margins. They remain at a stable level. The prices are still firming up and if they go up, this gives us room to keep our marketing margins at a stable level,” he stated.

“Crude oil prices are at rangebound level. If the international prices remain at this level, then definitely the prices at the pump can be expected to remain at these levels only,” he mentioned.

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He expects petrochemical margin to be robust.

“We want the petrochemical spreads to be robust in the rest of the year also which are very crucial for our profits. We believe that with petrochemical demand being robust, the prices should be at this level only or maybe firm up a little bit more,” he said.

For the full interview, watch the accompanying video.

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(Edited by : Dipikka Ghosh)