Most companies, barring a few, can withstand ongoing rupee fall: Report

Most domestic corporates, barring a few, can withstand the ongoing rupee plunge as the share of their dollar-linked earnings largely balance the share of their greenback-denominated debt, says a report.

The rupee fell beyond Rs 70 to the dollar, closing at an all-time low on Thursday at 70.15, while today the market was closed. So far, the rupee has lost close to 9 per cent, making it one of the worst performers among the large currencies.

"A weaker and more volatile rupee would likely result in increased hedging costs for companies, while the same may benefit exporters," an S&P report said on Friday.

"Most corporates can withstand the rupee plunge as the share of their dollar-linked earnings largely balance the share of their greenback-denominated debt. A few of them will be negatively affected, but not severe enough to impact their credit ratings," S&P said.

At least 21 hurt as fire breaks out at Bharat Petroleum's Mumbai refinery

A fire broke out at a refinery of Bharat Petroleum in Mumbai on Wednesday afternoon, injuring as many as 21 people, officials said.

The plant at Mahul road in Chembur area of east Mumbai caught fire around 3 pm, they said.

Nine fire tenders, two foam tenders and two jumbo tankers were pressed into service to douse the blaze, said a Brihanmumbai Municipal Corporation (BMC) official.

The refinery's own fire-fighting team was also engaged in dousing the flames which were now under control, he said.

As many as 21 people were injured in the incident, he said, adding they were taken to nearby civil hospitals.

The blaze erupted in the compressor shed of the hydrocracker plant, as per the company statement.

Petrol pumps not to buy fuel from OMCs starting June 16, may go dry

Petrol pump owners in India have decided not to purchase fuel starting from June 16, protesting against the “unilateral” decision by the government to roll-out the daily revision of fuel prices nationally.

Though the associations are not terming it as a strike, they claim that “no-purchase” from June 16 onwards means petrol pumps are likely to go dry from the day their stock gets over. “It is not a strike, but there will be no purchase of petrol or diesel, starting from June 16,” Ajay Bansal, president of All India Petroleum Dealers' Association, told Business Standard. According to industry figures, India has about 57,000 fuel retail outlets, out of which state-run Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have a combined network of close to 53,000 outlets.

Currently, IOC, BPCL and HPCL review retail fuel prices every fortnight taking into account of the global crude oil prices. The announcement of daily price revision of petrol and diesel came after a successful trial run starting from May 1 in five locations — Pondicherry, Chandigarh, Jamshedpur, Udaipur and Vishakhapatnam. Even private fuel retailers like Essar Oil and Reliance Industries too followed the system in these cities.

ALSO READ: Diesel, petrol prices to change daily from June 16; dealers raise concerns

The dealers were worried because of the declining stock value and were demanding an increase in dealer commission, which is between two-three per cent now. According to sources, oil marketing companies are likely to take a call on dealer commission by June 30.

“Daily price revisions of petrol and diesel will make the retail prices more reflective of the current market conditions, minimising the volatility in the retail selling price. Further, it will lead to increased transparency in the system. This will also enable smoother flow of products from refinery and depots to retail outlets,” IOC had said in a statement last week.
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