Fitch Ratings predicts mixed performance in India's oil and gas sector in FY24, with downstream profits falling and upstream growth remaining strong.
Fitch Ratings predicts a mixed performance in India's oil and gas sector in FY24. Downstream profits may fall due to Brent crude oil price dips and competition, while upstream growth remains strong due to low-single digit percentage oil and gas production growth. Indian oil marketing companies' marketing margins are expected to stay stable. India's petroleum product demand could rise by 3-4% in FY25, driven by consumer, industrial, and infrastructure needs. Upstream growth supports strong cash flows for key players like ONGC, OIL, and RIL. However, India's dependence on crude oil imports is set to increase.
June 22, 2024
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