Kuala Lumpur: “Bharat Petroleum Corp Ltd. (BPCL) will continue to buy crude from Iran this fiscal year at 250,000 tonnes,” its chairman said on Tuesday, dismissing earlier reports that it may stop the purchase.
Asked if BPCL is buying Iranian crude this year Ashok Sinha, who is also the company’s managing director said: “That is the plan.”
He said that even though Iranian crude is not ideal for BPCL’s refining, it is necessary in order to diversify its crude sources.
In March, a BPCL source had said that the refiner may not buy Iranian grades this year because of operational problems and less margins since it was not proving good in their system.
Sinha also said that BPCL’s oil products marketing margin has fallen to around $1.00 per barrel within the past two weeks, from the usual $1.00-$1.50 range, due to higher costs of crude.