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Loopholes keep state Indian refiners off oil market

Indian refiners Bharat Petroleum and Hindustan Petroleum are unlikely to begin importing crude independently before April 2002, Indian oil industry officials said on Friday.

The one-year delay was largely because authorities are yet to fix conditions for companies to meet before being given the go-ahead to trade independently.

In March, the government empowered the Oil Ministry to allow BPCL and HPCL to import crude from April 2001 provided they fulfil criteria set by the Empowered Steering Committee.

"There are a lot of untied ends. The two will be able to import crude only after April 2002," said a member of the ESC.

But even when the approval is given to the state refiners, they will only be able to make crude purchases under term contract, the official said.

Indian Oil Corp, which is charged under the current system to import all crude for state refiners, will continue to issue spot tenders.

"The cabinet approval is for term contracts and there is no willingness to extend it to spot," said the ESC official.

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