Indian refinery and petrochemical companies: Hemmed in?
The Middle East's furious hunger to refine the crude that it produces means that India has fallen way behind in the refinery-cum-petrochemical capacity building race 8China still has pole position but the Middle East is forging ahead and will take over from China soon 8The future demand for oil is going to come from producers of naphtha, LPG and ethane (see projections carried by us). 8Private Indian oil refiners may find themselves squeezed between Chinese, Middle Eastern and US refiners and petrochemical producers in what is going to be an increasingly competitive environment. 8One way out for Indian companies is to tap the big and rapidly growing Indian market. While the petrochemical market is wide open, the crucial diesel and petrol markets are not. 8As crude prices rise, the government is trying to be brave by allowing retail prices to rise but it is only a matter of time before price caps are imposed. Click on Reports for more