HPCL chief says crude sourcing is volatile, more bought landed
In short
HPCL’s chief said the company is buying more crude on a landed basis than on FOB basis and term contracts. He said crude sourcing is currently volatile.
This matters because it can affect HPCL’s costs and supply planning. The report does not say how much more it is buying or how prices are changing.
What the reporting says
HPCL is procuring more crude on a landed basis than on FOB basis and term contracts, according to Chairman and Managing Director Vikas Kaushal. The reporting says crude oil sourcing is presently volatile, but it does not give volumes, prices, or a date for the comments. The immediate takeaway is that the state-owned oil company is adjusting procurement, while the market impact is not quantified.
Why it matters
HPCL Chairman and Managing Director Vikas Kaushal said the state-owned oil marketer is procuring more crude on a landed basis than on an FOB basis and through term contracts. The source frames crude sourcing as presently volatile, but gives no pricing, volume, or timing details. The immediate implication is a shift in procurement approach for HPCL, while the cost effect remains unstated.